Ascendas Fund through deal in Mulgrave
Frasers & ESR have moved quickly to secure a fund through and take out party for its 245 Wellington Rd property being developed for Nissan.
The pair have entered into an arrangement with Ascendas REIT to fund through the development costs and pay a balancing payment equal to an initial yield of 5.8%.
The joint venture is a 50:50 split between Frasers Property and ESR. Frasers Property secured the site off Charter Hall for $15m in June 2019 shortly after Nissan confirmed their commitment to occupy 63% of the building. ESR will undertake the development with Ascendas now providing the fund through and take out arrangement.
The building which is expected to completed in 2020, will comprise 17,393sqm over 8 storeys and include a ground floor café, end of trip facilities and multi-level carpark for 913 vehicles. The building is designed to achieve a 5 Star Green Star Design & As Built v1 certified rating from the Green Building Council of Australia.
JLL and CBRE negotiated the sale.