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Government investment in refurbished MAB building


Government investment in refurbished MAB building

Investors can secure a foothold in the rapidly expanding south-eastern Melbourne office market with the sale by MAB Corporation of a 1359 square metre tenancy within its Moorabbin southjunction development.

Leased to government tenant Bayside Health on an eight-year lease with options, and returning approximately $273,000 per annum, the sale comprises the entire second level and 38 basement carparks at 999 Nepean Highway.

Occupying a prime position on the high profile junction of Nepean Highway and South Road, the vibrant southjunction commercial centre is also home to 31 strata titled offices ranging from 30 to 160 square metres. Recently refurbished, these offices are positioned on the ground and first floors.

MAB General Manager Business Development, Philip Soumilas, said: “This government investment is being offered at a significant discount on the values being achieved in the balance of the building. This, combined with a new eight-year lease, makes the second level of southjunction an excellent investment.”

Mr Soumilas said Moorabbin was becoming a commercial hub of Melbourne’s south-east, which currently enjoys a 2.6 per cent vacancy rate and an average prime face rent of between $220 and $260 per square metre.
“The second level of southjunction gives investors the opportunity to enter this dynamic market,” Mr Soumilas said.

He said investment-grade property was tightly held in the south-east, with sales over $2 million totalling only $40 million last year.

Level 2 at southjunction is for private sale. Expect around $3.7 million.