This article is from the Australian Property Journal archive
420 St Kilda Road is set to sell for circa $85 million, with the private Hong Kong investor selling the prime corner property in heart of Melbourne.
With a net lettable area of 10,435sqm, typical floor plates of 1,028sqm and 132 car bays, 420 St Kilda Road is currently occupied at 75% with a diverse tenancy mix providing a solid income foundation for potential buyers.
Leigh Melbourne, Nick Rathgeber, Daniel Wolman and Oliver Hay from Cushman & Wakefield are managing the sale of the office asset via an international expressions of interest campaign.
The sale of the 100% freehold property is expected to draw the interest of investment managers and private buyers alike.
“With an ideal profile for private investors and investment managers, coupled with the potential for increased NLA, this is a standout investment for those seeking prime opportunities in the market,” said Melbourne.
The property is the only office building on St Kilda Road offering full height floor-to-ceiling curtain walls and has recently undergone a best-in-class ground floor lobby, lift lobbies and EOT refurbishment.
“With rising construction costs due to inflation, economic rents have considerably increased, making 420 St Kilda Road a strategically sound investment with a built-in rent reversion and long-term income growth potential,” added Melbourne.
As one of only eight office buildings within immediate walking distance to existing tram stops and the new Anzac station, set to open in late 2024, the property is strategically located with the new station to enhance the local office market, providing a seamless link to the CBD and metropolitan Melbourne.
The sale price expectation is below the $92 million price HK-based Mars Holdings paid in 2019 when it acquired the office building from KKR and local partner Vantage Property Investments.
Vantage capitalised on the hot office market at the time, onselling the asset barely 18 months after paying Singapore’s Chip Eng Seng $68.84 million – which itself had paid only $45.28 million to Yong Quek in 2013.
Tim Gurner recently announced plans for another major project at a neighbouring site, having acquired a 4,651sqm site at 424-426 St Kilda Road that will make way for an $800 million ultra-luxe apartment building.
The international expressions of interest campaign for 420 St Kilda Road is scheduled to close on 7 December 2023.
