Asian Pacific or Gardner & Lang experience anyone?

[dharris]

I'm looking at buying one of these new Asian Pacific Serviced offices in melbourne at No.1 Queens Road as an investment....all the sums look great, has anyone had any experience with any of their past projects (Exchange Tower) or has anyone ever dealt with Chris Lang of Gardner & Lang?
thanks!

 

[Dave M]

Dharris
You may have already acted, bit late. Look carefully high rise office units, watch the out goings. Even though then tenant generally pays, if it is vacant you will have to. I have a rule -I don't like lifts( there are expensive to maintain). Compare the $M2 being offered with other developments and you will find prices vary quite a bit. Make sure the rental is realistic and inline with current rates. Often smaller deveopment shave a greater scarcity value down the track-attract tenant easier and sell easier=better gain!
Dave

 

[dharris]

I haven't bought yet, but am thinking seriously about it - I've been offered an office space on the 1st floor which is part of the "Business Centre" (ie a company leases this whole floor to operate the building services) to me this seems a pretty secure lease. My main concern is capitals gains.....the price is $5600/m2, but they say that you can't compare these to other standard offices because these have all the added services.

 

[Dave M]

This week a 100m2 office was sold in Collins St Melb for around 330k this is 3,300 per m2 in Collins St with car park(propably worth about 45k) Keep looking for value, @ 5500m2 the return has to be 385m2 pa for 7% return. where as Collins St is 231m2 pa. A lot more businesses can afford 231m2 than 385. I have just purchased an office @ 7% plus deprec 3,600 m2 approx Brand new. Not trendy but good value