This article is from the Australian Property Journal archive
A SHORTAGE of sub-500 sqm office space along the St Kilda Road boulevard has seen vacancy within the 492 St Kilda Rd building drop from 16% to 6% in just a few months.
Scolicare, Monash University and Kosch Fertilizer have all signed up for the B-grade building after Wellness Products signed a three-year deal within 13-level.
Lemon Baxter’s Amy Jones negotiated the 2×3-year deal that will see Scolicare secure a ground-floor tenancy at $290 per sqm with a 7.5% incentive, and Monash University a 1×2-year deal over level 2 of the building at $295 per sqm net.
She also struck the Wellness Products deal at $285 per sqm net.
Her colleague Will McMullin oversaw Kosch Fertilizer’s five-year deal for the partially-fitted part level four space at $260 per sqm net with a 12.45% net incentive taken as a fit-out contribution.
ASX-listed AIMS Property Security Fund took a 90% stake in the building two years ago after buying out the unitholders of the owning syndicate after taking a stake in 2012, looking to disclose an exit strategy within a three-year timeframe.
AIMS reportedly reached due diligence with a potential buyer of the 1971-built tower in 2014, having attracted interest in the vicinity of $38 million.
WA-based Lester Group sold off its 7,102 sqm, circa-1981 324 St Kilda Road office building in recent weeks for $42 million to Hong Kong group Glorious Sun, after quickly taking the building to full occupancy after much of it was infamously left empty by the exit of high-profile tenant Target.
The building was put on the market two years ago but the sales campaign was relaunched after the signatures of Veolia Environmental Services, Crawford & Co and Smart Group were secured for five levels of space within the nine-level building.
Australian Property Journal
