St Kilda Rd office block price doubles in four years
Property developer John Beville is hoping to almost double his money on a Melbourne office block that has hit the market with price expectations of about $160 million.
Beville’s private vehicle bought the tower at 509 St Kilda Rd for $84 million less than four years ago, public records show.
Soaring prices and a lack of investment-grade stock have created an opportunity for the landlord to take advantage of a still-buoyant market.
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The block is now fully leased to tenants such as the federal government, Fuji Xerox and life insurer AIA.
Several other offices have changed hands on the boulevard, with Abacus Property and Wing Tai Holdings snapping up VACC House for $95 million and Tong Eng Group buying a $77 million tower from the Myer family.
CBRE’s Kiran Pillai, Josh Rutman, Mark Wizel, Lewis Tong and Luke Etherington are agents on the deal.
“Melbourne’s fundamentals are so strong that owners of office assets have opted to leverage existing holdings and seek out further investments rather than sell, which has restricted supply to almost half of what was offered in 2017,” Pillai says.
This article originally appeared on www.theaustralian.com.au/property.
