This article is from the Australian Property Journal archive
A SINGAPOREAN listed company seeking to get a foothold into Melbourne has made a move for the Seek headquarters in St Kilda Rd.
Listed healthcare company International Healthway Corporation is believed to have made an offer of $35 million for 541 St Kilda Rd, which is owned by an unlisted fund managed by APN Property Group.
Property Review contacted IHC and the company declined to comment on the purchase.
At the same time, it is believed that IHC has bought 553 St Kilda Road from Montgreenan Holdings for $45 million. The property is home to the US Consul General.
The sale of 541 St Kilda Rd means the APN 541 St Kilda Road Fund will have a premature end. The six-year fixed term trust was launched in February last year.
The fund bought the property from the Stockland Direct Office Trust No. 3 for $28 million. At the time, the sale price reflected a yield of 9% and a rate of $3,394 per sqm.
The SDOT3 purchased the building from Stockland in 2007 for $30 million.
Located approximately 4km from the Melbourne CBD, 541 St Kilda Rd is a A-grade eight-storey building providing six levels office accommodation and two ground-floor retail tenancies, with a lettable area of 8,251 sqm and 128 parking spaces.
When APN bought the building last year, it was 79.3% leased to two tenants, Seek and Reset Cafe. Seek accounted for 95.6% of the total annual rental income. In September last year, APN signed an additional lease for 1,320 sqm at Level 2, lifting the occupancy rate to 97%. The two leases to Reset Cafe and Seek are expected to expire in June 2017 and October 2017 respectively.
St Kilda Rd is attracting significant attention. In January, Fort Street’s unlisted Australian Property Opportunities Fund bought 390 St Kilda Rd for $56.0 million.
And in December last year, Singapore’s Chip Eng Seng bought 420 St Kilda Rd for $45.28 million on 8.1% yield.
Property Review
