ADVERTISEMENT
ADVERTISEMENT

Myer Family to Offload Prime St Kilda Road Asset

SOUTHBANK-St-KIld-Rd-312-DRONEDJI_0901_edited

The Myer family have appointed CBRE to offload a prime St Kilda Road office following more than a decade of ownership.

Price expectations are around $65 million for the 312 St Kilda Road seven-storey building, which offers views across the Melbourne CBD, Royal Botanic Gardens and Port Phillip Bay. The listing comes amid a flurry of development and sales activity in the area -- sales in August included 390 St Kilda Road for $98 million and 420 St Kilda Road for $68 million.

Myer Family Investments’ Chief Executive John Russell said of the decision to place the property on market: “After more than a decade of ownership, Myer Family Investments is pleased to offer the Gateway building at 312 St Kilda Road for sale.

"As a prime location for a boutique office, set to benefit from a vibrant St Kilda Road precinct and extensive transport infrastructure investment, the future for this building is bright. We believe this opportunity will be maximised in the hands of a specialist property group, or an investor seeking to secure stable, long term income.”

CBRE’s Kiran Pillai, Mark Wizel and Luke Etherington are the appointed agents.

Boasting approximately 10,000sq m of net lettable area, the building is leased to major tenants including Healthscope, Vestas and Manpower Services. The property, which is underpinned by a 1,906sq m site, also includes a major commercial car park with 268 vehicle capacity.

CBRE’s Kiran Pillai said the sale opportunity came amid a series of on and off market transactions in the St Kilda Road market over the past 12 months.

“With St Kilda Road’s rent growth continuing to climb and A grade vacancy at levels lower than the CBD, this opportunity is likely to catch the eye of investors looking for a best in class asset that offers real potential for solid reversionary income growth over the short – medium term,” Pillai said.

“The building represents an outstanding investment opportunity, offering a well-mixed, near fully let income, as well as a prized corner location with views like no other building in the Melbourne market. It is without question a one of a kind opportunity in a market that will continue to prosper in the years to come.”

The opportunity to acquire 312 St Kilda Road comes after a number of recent transactions in the precinct.

Vantage Property Investments recently acquired a standalone B-Grade building for approximately $69 million on behalf of private equity group KKR. Rockworth Capital of Singapore also outlaid nearly $98 million on 390 St Kilda Road and Mapletree has just acquired 417 St Kilda Road.

ADVERTISEMENT
TOP STORIES
CONTRIBUTE TO THE CONVERSATION
Show Comments
advertise with us
The Urban Developer is Australia’s largest, most engaged and fastest growing community of property developers and urban development professionals. Connect your business with business and reach out to our partnerships team today.
Article originally posted at: https://theurbandeveloper.com/articles/myer-family-sell-st-kilda-road