Ferntree Business Park, Melbourne

Ferntree Business Park is one of Melbourne’s largest and well known business parks at c. 46,000 m² across 10 buildings and 1,890 car spaces on an 8.4 ha site. Additional long-term development rights attach to the undeveloped land with surrounding nearby higher education and medical precincts supporting long term tenant demand.

Investment Details

  • Suburban office and industrial business park
  • Purchased 100% interest in 2017 for a wholesale client
  • Purchase price circa $195 million
  • NLA of  46,000 sqm
  • 1,900 basement car spaces
  • 60% of income secured by long leases to multi-national tenants
  • Key criteria was for suburban office and industrial property with long WALE, strong tenant covenant, minimal capital expenditure, good location, modern buildings and further development potential
  • More contemporary masterplan currently being developed to guide future development

Investment Returns

  • IRR Forecast c.10%

Relationship Benefits

  • JGS created the off market investment opportunity through its relationships. 
  • The well-known capacity of JGS and its client to review, qualify and complete transactions was a key determinant in the vendor’s consideration of the exclusive dealings in a highly competitive capital market

Key Disciplines

  • Property Advisory
  • Property Investment
  • JGS ran due diligence process, all commercial negotiations and managed legal process
  • Development Management