Australian Unity sell St Kilda Rd site for $42.5m, apartment complex launches at 437 St Kilda Rd as Anzac station approaches

A major new apartment development has been launched at 437 St Kilda Rd.

A prominent Aussie super fund has sold a more than $40m St Kilda Rd tower in the biggest office sale on the prominent boulevard in three years.

Investment group Bayley Stuart has bought the 14-storey 468 St Kilda Rd property from Australian Unity’s Office Fund in a $42.5m move.

The sale comes as another super group, CBUS, launches a $350m new apartment complex on the boulevard once dominated by office buildings, amid rising speculation the planned Anzac Train Station’s future arrival to the strip will put it on track for a brighter future.

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Just 800m from the future Anzac Station, the 468 St Kilda Rd property’s location near the soon-to-open Metro Tunnel stop was a key selling point.

Colliers’ Head of Investment Services, Matt Stagg, said the sale showed growing demand for city-fringe commercial assets, particularly in areas set to benefit from major infrastructure projects.

“This was one of the best properties available on St Kilda Rd, and it received the level of interest it deserved,” Mr Stagg said.

468 St Kilda Rd, Melbourne, has just been sold.

The view expected from 437 St Kilda Rd, Melbourne.

But offices aren’t the only thing in demand.

Just down the road, Cbus Property has launched Four Three Seven, a $350m luxury apartment development at 437 St Kilda Rd, with buyers snapping up high-end residences priced from $1.95m to $8m.

Shared residents’ spaces will include lounge areas.

Lofty views will be on display around the new project.

Designed by Bates Smart, the tower is part of a new wave of residential projects reshaping the former corporate corridor into one of Melbourne’s most exclusive addresses.

Cbus Property chief executive Adrian Pozzo said demand for premium apartments reflected a growing preference for luxury living in well-connected city-fringe locations.

Residents will be able to enjoy a pool at 437 St Kilda Rd, Melbourne.

For decades, St Kilda Rd was Melbourne’s secondary office strip — close to the city but not quite part of it.

Now, older office buildings are being converted into high-end apartments, and with fewer commercial spaces available, the ones that remain like 468 St Kilda Rd are becoming even more valuable.

Knight Frank’s Trent Preece said tightening office supply was making prime commercial properties increasingly sought after.

“This is the largest office investment transaction to be completed in Melbourne this year and the first genuine office sale on St Kilda Rd in over three years,” Mr Preece said.

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