This article is from the Australian Property Journal archive
ASTUTE property investor Yong Quek has capped off 2014 the same way as 2013, closing another $40 million plus St Kilda Rd office sale.
In one of worst kept secrets in Melbourne’s property scene, Yong Quek’s Prime Value Asset Management has sold the former ANL House at 432 St Kilda Rd for approximately $41.6 million.
The property was put on the market in March this year. The sale price is almost double the $21.55 million Quek paid in 2002. Prior to that, Clement Lee sold the property in 1998 for $16.2 million.
The 12-storey comprises 9,100 sqm of space and two levels of basement parking for 136 cars. It is currently 100% leased to a number of tenants including the Malaysian Consulate, returning $3.1 million a year.
This is the second St Kilda Rd office building sold by Quek in 12 months, after offloading 420 St Kilda Rd to Singapore’s Chip Eng Seng for $45.28 million in December last year. Quek bought the asset from Investa Property Group for $40.35 million in 2008.
The famed boulevard has been written off as an office hub countless times over the years. In the years following the GFC pundits sounded the death knell after high profile tenants moved out and went to Docklands.
However the St Kilda Rd market fought back and has witnessed a revival, due to interests from foreign and local high-net-worth players, syndicates, unlisted funds and private investment groups. Savills recorded $358 million in transactions in the year to September.
Demand for assets along St Kilda Rd and the surrounding areas, is running hot with vendors flipping their investments for significant profits after owning it for a short period.
Most notable recent transactions include Centuria Property Funds divesting 441 St Kilda Rd to Dymocks Group for $86.6 million in October, after buying it two years ago for $58 million.
Abacus Property Group and its joint venture partner Heitman sold 484 St Kilda Rd to a UBS and Grocon JV for $94 million, after buying it three years ago for $68 million.
APN Property Group sold 541 St Kilda Rd to Singapore’s International Healthway Corporation Limited (IHC) for $35.8 million, after paying $28 million in May last year. IHC also bought 553 St Kilda for $45 million from Montgreenan Holdings.
In other deals, Vantage Property Investments paid $27 million for 11 Queens Rd from Denison Funds Management; Fort Street Real Estate Capital’s unlisted Australian Property Opportunities Fund bought 390 St Kilda Rd for $56 million; a local developer bought 20 Queens Rd for $35 million plus.
Australian Property Journal
