Two significant properties in Melbourne have sold for a combined $130 million to separate purchasers, a St Kilda Road office building and commercial premises in Church Street, Richmond.
Singaporean businessman Teo Tong Lim has acquired the Myer Family Investments' holding at 312 St Kilda Road for a reported $75 million.
The property was bought by interests associated with Tong Eng Group's Group managing director Teo Tong Lim and is the group's second major purchase in two months following the acquisition of the headquarters of the Country Fire Authority at Burwood East in Melbourne for $18.08 million in September.
The price tag for the St Kilda Road property beat early expectations of around $65 million.
Tong Eng Group director Emilia Teo said the group was extremely pleased to acquire one of St Kilda Road’s most iconic properties, also known as the Gateway building.
“We are confident that the acquisition presents good long-term value for our shareholders, with positive rental reversion and is a reflection of the prominence of the building and the Myer Family's commitment in maintaining and nurturing the asset,” Teo said.
It has a net lettable area of 10,000sq m and is leased to major tenants such as Healthscope, Vestas and Manpower Services, the prominent seven-storey building and car park is located above the St Kilda Road market, 1km south of Melbourne's CBD.
CBRE’s Kiran Pillai, Luke Etherington, Mark Wizel and Lewis Tong negotiated the sale, with the price reflecting a passing yield of 4.66% on a circa 90 per cent occupancy rate.
Salta Properties has paid $51 million to acquire 459-471 Church Street, Richmond.
The site, just outside the Cremorne precinct dubbed "silicon Yarra"has frontages to Church, Shamrock and Brighton Streets, 150 metres from the Swan Street intersection.
The 5,276sq m commercial property is one of the largest within Melbourne’s inner city suburbs. The proposed development will comprise over 25,000sq m of prime office space, a childcare facility, and ground floor amenities across three buildings.
Salta Properties managing director, Sam Tarascio, said that the company is excited to gain a property in such a prime location, in one of Melbourne’s most sought-after hubs for technical innovation and blue chip office space.
The 459-471 Church St development will feature food and beverage offerings, childcare, a medical clinic, rooftop terraces and co-working spaces mixed in over three buildings. The development will also have a 6-star Green Star rating.
The acquisition of 459-471 Church Street adds to Salta’s significant development pipeline across its commercial, industrial, retail, residential, and hotel sites which now has a development end value over the next five years of $5.2 billion.
[Related reading: Salta Properties Pioneers Big Plans For Docklands Development]