120 Harbour Esplanade Docklands Close to Sale
Well-placed industry sources say APN is in advanced negotiations with a private Singaporean-based investor to sell the four-year-old, eight-level Docklands building.
Bendigo Bank fully occupies the 8019-square-metre tower, which abuts the recently renamed Etihad Stadium’s south-west boundary. The bank’s lease ends in 2015.
Sources expect 120 Harbour Esplanade to trade on a yield of about 9 per cent, based on the building’s annual income of $2.8million.
CB Richard Ellis and Jones Lang LaSalle are marketing the property, but declined to comment on any part of a deal when contacted by Capital Gain. An APN Property Group spokesman did not return calls.
APN is reported to have paid $34.3million for the building in 2005.
A sale would be welcome news for APN, which last week lost law firm Allens Arthur Robinson as a prospective anchor tenant for its 567Collins Street office building. APN has been trying to get 567 Collins Street off the ground for more than two years.
AAR announced it signed a 12,600 sq m lease at the ritzy 101 Collins Street last Friday, and will occupy that building from early 2012.
