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    269-271 Frankston-Dandenong Road

    • Dandenong South VIC

    • GLA 7,351sqm on Land 24,330sqm

    • Purchase November 2012 • Sold April 2015

    • IRR 27.7%
    • TR 72.9%
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    Strategy

    269-271 Frankston-Dandenong Road is an industrial facility built in 1970 and modernised in 2004.

    The property is located on the north eastern corner of Frankston-Dandenong Road and Cojo Place, approx 32km south east of Melbourne.

    The facility consists of an office, factory and warehouse with total building area of 7,095sqm on land area of 2.43 hectares.

    Activities

    During the acquisition negotiations, QE completed key value enhancements. This included securing a new ten year lease term, with high fixed annual rental growth and ensuring that tenant outgoings included repairs, maintenance and replacements of a structural nature.

    Notwithstanding the relatively passive nature of this investment, we continually focused on developing a strong relationship with the tenant, to ensure the tenant’s occupancy needs were met on an ongoing and long-term basis. This included some works on the building facilities to meet the tenant’s requirements.

    Outcome

    In 2014, we agreed to build a storage shed of approximately 250sqm to the tenant’s specifications and in return the tenant agreed to execute a new 14 year lease over the property.

    This property was sold in April 2015.

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