Myer Family Corporation May Buy St Kilda Road Office Building

The Myer Family Corporation is believed to have outbid listed property institutions and other cashed up private investors for one of the best located office buildings in St Kilda Road.

Sources say the family, which recently teamed with Colonial First State to buy the Myer Bourke Street retail building for more than $600 million, is formalising plans to pay more than $50 million for the 20 year old building known as Gateway.

The building’s name reflects its location as the first St Kilda Road office building south of the CBD, and it benefits from being walking distance from the Flinders Street station and the train network, making it a hit with tenants.

The 8-level, 10,275 square metre A-grade building is being offloaded by private investment company the Kador Group, which paid $31.8 million for the building in December 1998. The building includes a 273-bay car park which is large for the precinct.

ASX-listed health care operator Healthscope recently committed to almost 5000 square metres of space at Gateway, bringing occupancy in the building to close to 100 per cent.

A spokesperson for the Myer Family Corporation failed to return Capital Gain’s calls. A representative from CB Richard Ellis, which was marketing the project, declined to comment.

A formal announcement about a purchase is expected to occur later this year, or early 2008.

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