A MALAYSIAN investor - a first-time buyer in Australia - has snared a quality office building in South Melbourne in another sign of deepening Asian investment in Australian commercial property.
CBRE's team of Mark Wizel and Justin Clarkson handled the campaign for 11 Dorcas Street, which sold for more than $14 million. The off-market sale was made for a group of private Melbourne investors.
The modern five-level office building is fully leased to information technology company Dimension Data. Based on the current passing income, the sale reflects a yield of about 8.1 per cent.
The property, which has 25 secure basement car parks, is close to the Royal Botanic Gardens precinct of St Kilda Road. The location is believed to have been a big drawcard for the private Malaysian family, who bought the asset before a scheduled public marketing campaign. They had been keen to buy a Melbourne property for some time.
The sale of 11 Dorcas Street adds to the growing list of Victorian commercial properties to be sold to Malaysian, Singaporean or Chinese investors. Mr Wizel said about $680 million in Melbourne transactions involving Asian buyers had occurred over the past 2½ years.
''Demand has remained strong even with the Australian dollar reaching $1.05 [US] in recent times,'' Mr Wizel said. ''The strong level of interest from Asian purchasers is due to the natural geographic links between Australia and key Asian countries, as well as the affinity that many Asian investors have with Australia.''