This article is from the Australian Property Journal archive
LENDLEASE’S Australian Prime Property Fund (APPF) Commercial and Savills Investment Management have sold the Myer headquarters in Melbourne for a premium price.
It is believed 800 Collins St was sold for in excess of $290 million to Manulife, which is above the market expectations of $280 million.
JLL’s Langton McHarg, Paul Kempton and Rob Sewell were appointed to market the asset alongside Savills Australia’s Ian Hetherington, Simon Fenn and Ben Azar.
The sale achieved a premium price despite Myer recently announcing that it has reduced its office footprint by more than 40% as part of further cutbacks to its workforce. Myer has vacated around 4.5 floors of space within the 10-storey 30,000 sqm building. Although Latitude financial Services (formerly GE Money) took up the 9,744 sqm of space vacated by Myer.
The property was purpose built for Myer in 2010 with an end value of $175 million. European fund manager SEB Asset Management acquired a 50% stake for $76.87 million on a cap rate of 7.75%. SEB AM was taken over by Savills IM in 2015.
The sale has delivered Savills IM with a capital gain in excess of $68 million.
Lendlease Investment Management managing director Josh McHutchison said the A grade commercial building attracted strong interest from global and local buyers.
“Melbourne continues to increase its global importance as a high-performing business destination, as demonstrated by the strong interest this asset received, and we are very pleased with the outcome for our investors.
“The sale of 800 Collins Street continues the fund’s portfolio re-balancing strategy to focus on flexible and sustainable precincts that benefit from excellent transport links and access to public green space,” McHutchison said.
“We are very pleased with the outcome for our investor,” Savills IM Australian head of investment Lee Tredwell said.
“The sale was the culmination of the joint owners actively repositioning the asset to attract a new high profile tenant on a long-term lease and in turn creating a multi-tenanted building with a longer weighted average lease expiry that would appeal to core investors.” Tredwell concluded.
Australian Property Journal
