Orchard to Pocket $54 Million From 350 Collins Street Sale

Orchard Funds Management is believed to be close to selling its B-grade Collins Street office building for $54 million.
 
The Citibank Centre, at 350 Collins Street, is a 50-year old, 15-level building with 17,800 square metres of office space, 96 per cent of which is occupied.
 
The building returns about $5.4 million in annual rent, and at a sale price of $54 million, would trade on a yield of 10 per cent.

Orchard – the new name for the company previously known as SAITeysMcMahon - paid $55.5 million for 350 Collins Street in late 2005.
 
Part of that spending spree saw it acquire the Kvaerner House building in St Kilda Road for $58.1 million. That property is on the market at the moment for about $60 million.
 
Representatives from Orchard, and selling agent Jones Lang LaSalle, declined to comment.