Abacus Property Group and Singapore’s Wing Tai Holdings have pooled together to acquire an office tower in Melbourne’s St Kilda Road commercial precinct for $95.38 million.
Home to the Victorian Automobile Chamber of Commerce, the tower is one of the largest office buildings in the precinct and its listing will be the first time the building has hit the market in 60 years.
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Abacus said in an ASX statement that the acquisition was driven by the property’s “strong fundamentals”, including location, excellent natural light and views – making it attractive to future tenants.
“This acquisition supports our city fringe thematic for assets that should provide significant longer term growth prospects for reasons including increased accessibility to the CBD driven by elevated levels of infrastructure spend.”
Sitting on a site at 464 St Kilda Road the building offers 13,827 square metres of net lettable area across eight commercial levels.
The property is fully leased, with a sale and lease back of 30 per cent of NLA to the owner, Victorian Automobile Chamber of Commerce, and has a weighted average lease expiry of 2.4 years.
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While providing 299 car parking spaces on site and at a neighbouring property, VACC House is also serviced by local transport including buses and trams as well as the Metro Rail Project, which will bring a train service to St Kilda Road for the first time in 2026.
This year alone Abacus has also spent another $93.5 million in Melbourne’s commercial market, acquiring Computershare's headquarters at Abbotsford in inner-city Melbourne on a 5.85 per cent yield.
The St Kilda Road precinct has witnessed some serious market activity in recent months with Ginkgo Investments acquiring 606 St Kilda Road for $57.5 million in February and Glorious Sun snapping up an eight-storey building at 324 St Kilda Road late last year.
Singapore-based Rockworth Capital Partners acquired a 22-storey office building at 390 St Kilda Road for $98 million in August 2017.
Former Federation Centre chief executive Steven Sewell has been appointed managing director of Abacus Property Group following the announcement of industry veteran Dr Frank Wolf’s death on Wednesday.
“It is with great sadness that I take on this role and responsibility at this time. I am committed and confident in the Group’s ability to continue the strong legacy Frank leaves behind,” Sewell said in a statement.