The Narre Warren Police Station has hit the real estate market, with a price tag of $10 million.
Property fund manager ISPT is selling the Narre Warren station, as well as the Mill Park Police station in the city’s North-East, amid rising demand for long-leased social service and infrastructure properties.
ISPT fund manager Georgina Bishop said a re-balancing of ISPT’s CIB Fund, which controls a portfolio of Victorian law courts and police stations, triggered the sale campaign.
“The strong performance of the fund and some recent acquisitions have prompted the decision to sell the Narre Warren and Mill Park assets, which have been identified as highly appealing given their tenancy covenants and future potential,” Ms Bishop said.
The two-level Narre Warren station building is 2099sqm and sits on a corner site of 3619sqm, offering a net annual income of $615,688.
The property is entirely leased to Victoria Police until at least August 2025, meaning the Police station will continue to run regardless of the land sale.
CBRE Capital Markets Office agents Tom Ryan and Scott Orchard, together with Sandro Peluso and Jimmy Tat of CBRE’s Social Infrastructure team, are leading the Expressions of Interest campaign.
Mr Ryan said the Victorian State Government leases, extensive landholdings and improvements would be key buyer drawcards.
“Police station freeholds are seldom offered for sale, with the campaign also coinciding with increased buyer demand for robust tenant profiles in the wake of the pandemic,” Mr Ryan said.
“Both assets house unique infrastructure and improvements and have benefited from recent building upgrades.”
The property is supported by a wide variety of retail amenity and services given its proximity to Westfield Fountain Gate, noted Mr Peluso.
“There has been an investor gravitation towards social service and social infrastructure properties in recent years as investors seek to strengthen the ESG credentials of their portfolios, with the replacement costs and future possibilities of each asset making the investment case very compelling,” he said.
The Expressions of Interest campaign closes Wednesday 22 June at 12pm.
