This article is from the Australian Property Journal archive
Robert Anderson and James Kaufman of Jones Lang LaSalle and Knight Franks Paul Henley and Paul Burns have been appointed by KordaMentha to sell 601 St Kilda Rd.
It is expected to sell for circa $35 million and based on a fully leased net income of almost $3.3 million, would reflect a generous yield of over 9%.
Anderson said the property is located on a high profile corner site situated at the intersection of High St and St Kilda Rd.
“The investment is underpinned by significant underlying land value. Future strategies include lease renewal, re-leasing or major residential re-development,” he added.
Henley said renewed interest from high calibre tenants moving to St Kilda Rd is having a positive influence on occupancy levels, rental growth forecasts and in turn, investor sentiment.
According to JLL, the market has experienced rental growth and tightening vacancy levels over the past nine months and the short to medium term forecast is for this trend to continue.
Anderson said relocations into the St Kilda Rd precinct total approximately 14,000 sqm in the first six months of 2011 and this trend is set to continue.
Located on a substantial corner allotment of 7,302 sqm, 601 St Kilda Rd provides approximately 10,626 sqm of net lettable area over four levels and car parking for 231 vehicles. The property is almost fully leased by Suncorp Corporate Services (AAMI) until December 2014.
Australian Property Journal
