About Approach Contact
Portfolio · Real Assets

Melbourne Inner-East Office Portfolio

Acquired 2023–2024 · Mixed-Use Commercial

Assets

Four commercial properties in Camberwell, Hawthorn and Kew, acquired between 2023 and 2024.

Tenants are professional services firms: medical suites, accounting practices and specialist consultancies. Occupancy is 96 per cent.

Terms

The properties are held directly and unlevered. There is no debt against the assets.

The buildings were acquired in maintained condition. None required significant capital expenditure before leasing.

Selection

Purchase criteria were location in Melbourne's inner east, tenant quality and price. Two buildings that did not meet the criteria were declined.

Income

Rent contributes to the office's operating costs and commitments. Capital works are funded from income rather than from new borrowings.

Review

Each asset is reviewed annually against the thesis recorded at purchase: tenant quality, lease expiry profile, required capital expenditure, and rent relative to comparable stock.

Risks

Office demand in the Melbourne CBD has weakened while inner-suburban vacancy has been steadier. Both are monitored.

A tenant default or a fall in occupancy would reduce income.

Elsewhere in the Portfolio

Other work in the portfolio

Two further positions that illustrate how the office allocates capital across asset classes.

Australian Quality Equities Portfolio
Equities

Australian Quality Equities Portfolio

A concentrated book of listed Australian businesses selected on durable earnings and balance sheet strength.

Core holding since 2023View →
Infrastructure & Real Assets
Real Assets

Infrastructure & Real Assets

Long-life assets with contracted or regulated cash flows, sitting alongside the property and equity books.

Selected positionsView →
Position Facts

The position at a glance

4
Properties held
96%
Occupancy
3
Suburbs covered
Nil
Debt against assets
Questions on This Position

Questions about this position

Questions asked about this position.

The demand drivers are different. Professional services firms — medical, accounting, legal and consulting practices — need to be close to their clients, so inner-suburban vacancy held steady while CBD vacancy rose.

At purchase, inner-suburban assets were priced at similar levels to CBD assets.

Leases are underwritten on current rent with no assumption of rental growth.

The buildings are in established suburbs and were bought in maintained condition.

There is no debt against the properties. Each asset is reviewed annually against the thesis recorded at purchase: tenant quality, lease expiry profile, required capital expenditure and rent relative to comparable stock.

Capital works are funded from income.

Positions are reviewed annually against the thesis recorded at purchase.

Discuss a Position

Discuss a property opportunity

If you hold or represent a commercial property in Melbourne's inner east and are looking for a long-term, unlevered owner, a written note is the fastest way to reach the office.

  • Substantive enquiries are answered within two business days.
  • Commercial information is treated as confidential.

See how the rest of the portfolio is built

This position is one of six that illustrate the way the office allocates capital.

Read Our Principles Back to Home