Challenger Sells 417 St Kilda Road, Melbourne, For $80 Million

Thursday, 13 September 2012 00:25

INVESTMENT manager Challenger has offloaded a major St Kilda Road tower in an $80 million deal.

The 10-level, 20,000 square metre A-grade office at #417 (pictured, right) has been purchased by syndicate Newmark Property Group, headed by ex Lend Lease and Mirvac executive Chris Langford and Simon Morris, previously director of the Peninsula Development Group.

The sale price represents a high yield of about 9 per cent. For years known as the Mobil building, 417 St Kilda Road includes Oracle and the Red Cross as major tenants.

The asset is the second for Newmark in the past ten months. Last December the syndicate paid about $55 million for a homemaker centre in Chadstone in Melbourne’s south-east. The syndicate and the agency, Colliers, declined to comment to the AFR which reported the sale.

Elsewhere in the tree-lined boulevard south of the Melbourne CBD, 441 St Kilda Road sold for $58 million recently. The company sold a 10-level office at 607 St Kilda Road to an investor for $28.54 million.