GERMAN fund manager Deka Immobilien Investment has paid $167 million for Melbourne’s 15 William Street office building, some $33 million less than the speculated sale price last month.
Deka is buying the 20-level, A-grade office building on a yield of 8.75 per cent.
The building was occupied in the 1990s by electricity supplier SEC, and purchased by AMP in 2000 for $25.5 million, which spent another $100 million refurbishing and extending it. The new office opened in late 2004. Its largest tenants are accounting firm Pitcher Partners, which also has naming rights, and customer service group UCMS, which took space in 2004, and extended its tenancy in about 2007.
The building is on the corner of Flinders Lane, one block from Collins Street, but is also in a growing part of the CBD, close to the Yarra River, the Melbourne Aquarium and the Northbank Place group of buildings. CB Richard Ellis agents Rick Butler, Mark Coster and Mark Granter, sold the property off-market.
Late last year Deka paid Stockland $53.5 million for an industrial park at Greystanes, Sydney, while a few months ago, it paid Macquarie Office Trust $95 million for Perth’s Australian Taxation Office, according to the AFR.
Deka is understood to have about another $500 million available for Australian property investments.