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Office Building Sells for $57.5m on Tightly-Held St Kilda Road

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Chinese investor, Ginkgo Investments, has purchased a premium office building for $57.5 million at 606 St Kilda Road, Melbourne.

The building was owned by Melbourne-based investment firm Bayley Stuart Capital who purchased the 10-level building in 2016 for $40 million.

The transaction was made on a yield of between 5.5 to 6 per cent and negotiated by CBRE’s Kiran Pillai who declined to comment on the deal.

Ginkgo Investments is a high-quality glass manufacturer based in Shenzhen, China.

Related reading: Strong Employment Growth Puts Pressure on Office Space in Sydney, Melbourne

606 St Kilda Road is situated on a land area of approximately 2,322 square metres and has a floor area of 8,647 square metres. The building offers 141 car spaces and features views over Albert Park Lake and Port Phillip Bay.

Prime office vacancies in Melbourne are the strongest in five years. Office markets have been strengthening with vacancy rates dropping below 5 per cent in both Sydney and Melbourne according to PCA’s latest Office Market Report.

In October, one of the best located office buildings at 324 St Kilda Road was sold to a Hong Kong conglomerate for $42 million.

Carlton & United Breweries has just sold its headquarters nearby in Southbank to the Victorian government for over $95 million.

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Article originally posted at: https://https://theurbandeveloper.com/articles/office-building-sells-for-575m-on-tightly-held-st-kilda-road