Shesh Ghale to Reap About $22 Million From 388 Lonsdale Street Office Building

HAVING paid La Trobe University about $15 million for La Trobe Street’s distinctive Argus building in March, the owner of education enterprise Melbourne Institute of Technology, Shesh Ghale, is reweighting his property portfolio.

Mr Ghale has listed for sale a B-grade office tower once known as the Euro Asia building, at 388 Lonsdale Street, on the north-east corner of Hardware Street, and near the Hardware Lane cafe precinct.

Mr Ghale is reported to have paid $12.1 million for the office in May 2004, eventually filling the 13-level, 6618 square metre building for his education business.

The 51-year old building, on a 689 square metre block, will be sold with a 5+5 year leaseback to the Melbourne Institute of Technology, which is agreeing to pay a starting rent of $1.8 million.

It’s expected to sell for about $22 million, which would reflect a yield of about 8.1 per cent.

Colliers International’s Pat Burke and Matt Stagg are the marketing agents.

Mr Ghale is planning to redevelop the 1926 Argus building into a $50 million university campus, and restore a clock tower that was part of the building’s original design.

He also owns a development site around the Queen Victoria Market, where an $80 million education facility is planned.