Investment manager Terraplex is offering a prime St Kilda Road asset for sale as the Melbourne office investment market continues to gain momentum.
The 570 St Kilda Road property will be sold via international Expressions of Interest with CBRE’s Kiran Pillai, Scott McGlone and Hugh Thomson along with Cushman & Wakefield’s Leigh Melbourne, Nick Rathgeber, Mark Hansen and Josh Cullen managing the sale process. Pricing is expected to exceed $65m.
Terraplex acquired the 7,647sqm building in 2012 and has invested significantly in a repositioning effort over the course of its ownership, which has seen the building attract and retain major tenants including Simonds Homes, Accolade Wines and ALM Williams Partners. The repositioned building is offered with a WALE of over three years providing a secure income stream in the medium term.
Pricing for the 570 St Kilda Road property is expected to exceed $65m.
Terraplex Directors Anthony Wilson and Charles Raymond said, “We are incredibly proud of the building’s performance over the past nine years, however the closed end fund in which 570 St Kilda Road sits has reached its natural conclusion.”
Mr Pillai commented, “Despite a COVID backdrop, the Melbourne CBD and St Kilda Road precincts have stood up as robust and resilient markets and 570 St Kilda Road is no exception. All major tenants have re-committed to the building recently, which will drive confidence from a market that is very focussed on income rigidity.”
Mr Melbourne added, “The vendor has created an ideal platform for the next owner to leverage and capitalise on significant uncaptured upside. These factors, coupled with St Kilda Road being an extremely tightly held market, will result in the opportunity being incredibly well received.”
The property is being sold by International Expressions of Interest closing Wednesday 10 November at 3pm (AEDT).
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