Suburban Office Block Leaps $55 Million Bar

Melbourne’s Zagame family struck one of the biggest suburban office deals of the year agreeing to pay circa $55 million for a Hawthorn building leased to Swinburne University. The deal for 2 Luton Lane, Hawthorn done on a fully leased yield of 5.3% delivered a 46% capital gain to Sydney-based investment firms Trumen Corporation and Bricktop Group which paid $37 million for the four-level building in 2015.

The building comprises 5,660 square metres of office space and occupies a strategic site near the corner of Burwood and Glenferrie Roads. The building rate of almost $10,000 a square metre was the highest for a metropolitan Melbourne office asset in 2019.

The office block serves as Swinburne’s head administration office and includes a striking atrium entrance and basement car park.