Private Property Trust No. 2
Initially acquired in 2002, Fawkner Property became the manager of the trust that owns the Box Hill property in June 2011 and managed the asset through to its sale in November 2014.
Through Fawkner Property’s period of Management, new leases and lease renewals were undertaken, improving the property’s income profile and increasing the average length of lease (WALE) to 3.3 years.
In 2014, Fawkner Property identified that the progressive redevelopment of properties around the Box Hill central business district was driving strong sales results for similar office assets. With the asset approaching 25 years of age, capital expenditure commitments were beginning to increase and through close liaison with tenants, it was discovered that a major tenant was considering vacating at the end of the existing lease.
A sales campaign resulted in the sale of the property for $13.8 million, which was a 5% premium to the previous independent valuation of the property. Based on the investor’s initial $1.00 investment, Investors received a return of $2.07 delivering a 13.7% per annum total return over the 9-year investment term.