In Melbourne's largest office deal for 2017, Canada's biggest insurer Manulife Financial has purchased the Myer headquarters in Docklands for a reported near-$300 million.
Dockland’s Victoria Harbour asset was bought by Manulife’s real estate division Manulife Real Estate. The company is actively targeting Australian property with the Myer deal its first acquisition in this market.
The building was listed with expectations of $270 million. The Myer building has been jointly owned by the Lendlease-managed Australian Prime Property Fund Commercial and Savills Investment Management.
The Myer building, at 800 Collins Street, consists of 28,619-square metres of office space over 10-storeys with 873-square metres of retail. There are two levels of car parking.
The complex is fully occupied by tenants including retail giant Myer and Latitude Financial Services (formerly GE Money). The A-grade building was listed by Savills and JLL.
[Related reading: Myers Headquarters Listed for Sale]
Manulife Financial Corporation provide’s financial advice, insurance, as well as wealth and asset management solutions for individuals, groups and institutions.
At the end of 2016 it had US$728 billion in assets under management and administration. Its key markets of operation are in Asia, Canada and the US. Manulife Real Estate operates as John Hancock Real Estate in the US.
Earlier this year, Manulife Real Estate acquired 8 Cross Street, a 28-storey, 355,000 square foot, Class A office tower located in Singapore. The transaction, valued at US$526 million, is the second largest in Manulife Real Estate’s global portfolio to date and the company’s first real estate acquisition in Singapore.
The transaction comes off the back of a flurry of market activity for prime commercial real estate assets in Australia including in Melbourne.
Early this month Singapore-based TrustCapital Advisors sold five prime office assets along Australia’s eastern seaboard totalling over $727 million as it exits its Australian holdings.
[Related reading: Singapore Firm Sells Australian Office Portfolio For $727m]