Myer family puts inner-Melbourne office on the block
The Myer family is selling a seven-level office building in inner Melbourne after owning it for more than a decade with price expectations around $65 million.
The offering at 312 St Kilda Rd comes amid a flurry of activity nearby, with Vantage Property Investments buying 420 St Kilda Rd on behalf of KKR for around $69 million, Mapletree buying number 417 for $145 million and Rockworth Capital buying number 390 for $98 million.
The listing also follows the Schwartz family’s decision to sell the oldest pub in Melbourne, the Duke of Wellington, and the Adina Hotel at 88 Flinders Street, which could fetch $80 million combined.
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The St Kilda office has around 10,000sqm of net lettable area on a 1906sqm site, with tenants including Healthscope, Vestas and Manpower Services. Its car park can house 268 vehicles.
Myer Family Investments chief executive John Russell says the office block will benefit from investment in transport infrastructure nearby.
“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,” Russell says.
CBRE’s Kiran Pillai, Mark Wizel and Luke Etherington are agents on the deal.
“With St Kilda Rd’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 says.
This article originally appeared on www.theaustralian.com.au/property.
