Pace sell Near complete Collingwood Building
Pace have pre-sold their development in Collingwood for $31.6M to a private investors on a yield of 5.08%.
The SJB design building contains 3,083sqm of NLA over 11 levels and sits on a 510sqm site. The tight floor plates provide for light-filled office space and along with a ground floor café, end-of-trip facilities, communal areas and secure basement car parking, the building has attracted a range of small tenancies.
The property is forecast to generate $1,600,000p.a from 11 tenancies with most now fully lease, offering a 6 year WALE. Pace have offered a 5-year rent guarantees on the few remaining tenancies .
The Melbourne-based developer acquired the Collingwood site for $1.86 million in 2014 and are expected to complete the construction prior to the end of 2019. Pace had originally hoped to achieve $25M from the sale however the strong tenant demand and a lack of quality stock for yield hungry investors has pushed the price well above their expectations.
The project was sold by CBRE.