This article is from the Australian Property Journal archive
DESPITE the current capital value easing cycle, Swiss fund manager ST Real Estate has put its Melbourne office building back on the market, hoping to capitalise on the growing investor optimism driven by anticipated interest rate cuts.
Cushman & Wakefield and Teska Carson are selling 50 Queen Street, a B Grade 16-storey office building with 9,156 sqm of net lettable area, occupying a 917 sqm site.
It is currently 73% leased and generates a fully leased net income of more than $4.6 million.
Patrick Lardi, chairman STRE Management Group said it was time for the group to divest the building.
“For us, it’s time to exit this investment and look for other opportunities,” he said.
Although the building is likely to sell for much lower than the $80 million original price tag in 2022, when the property was on the market.
It is expected to fetch around $40-50 million, inline with the current valuation easing cycle. The Swiss firm bought the asset in 2014 for $40.7 million.
“50 Queen Street has been a very stable investment for our investors also through the recent down of the cycle,” Lardi added.
Cushman & Wakefield international director and co-head Daniel Wolman expects the property will be hotly contested by investors given the location, income profile and value-add potential.
“It is poised to attract a diverse mix of local and international investors, from those seeking strong leasing covenants and stable income to those looking to unlock further value through upgrades, conversion to living or event redevelopment.
“With the anticipation on several interest rate cuts being imminent, STRE have chosen the perfect time in the market to offer an asset that has so much potential as the market sentiment is the most optimistic we have seen since 2021.”
Cushman & Wakefield’s Daniel Wolman, Oliver Hay, and Leon Ma, together with Teska Carson’s Ion Teska, Matthew Feld, and Adrian Boutsakis are handling the sale which closes Thursday 20 March 2025.
