Solomon Lew buys major office from landlord
Solomon Lew has snapped up a St Kilda Road office with development upside on a double block abutting Fawkner Park, for a speculated $90 million.
The deal for #417 is with Singapore listed Mapletree Investments which paid $144.4m in 2017.
That seller was Chris Langford’s Newmark Capital, which outlaid $81.3m in 2012.
CBRE’s Scott McGlone and Kiran Pillai with Knight Frank’s Trent Preece and Tom Ryan brokered the latest sale.
It comes a month since we reported Mapletree made its maiden Australian student accommodation investment – in Perth.
Lew doubles down in St Kilda Road
On 6071 square metres with significant development upside, 417 St Kilda Rd is able to accommodate a 12-plus level tower with a gross lettable area of c48,000 sqm.
It presently contains a 10 storey, 20,184 sqm A-grade office with 473 car parks.
Mapletree recently completed a c$6m renovation.
It has also been actively leasing it, mid-year securing Gurner to 610 sqm.
Oracle is the anchor, also with branding rights.
Mr Lew’s Premier Investments and Century Plaza Investments, the latter Myer’s biggest shareholder, with 26.8pc, are also based there.
The deal comes nine years since Mr Lew outlaid $55m for the then-vacant 457 St Kilda Road – on 3035 sqm, also abutting Fawkner Park.
Containing 9348 sqm over eight levels and 119 car parks, that building is part occupied by Premier Group brands including The Just Group and Smiggle.
Another discounted St Kilda Road deal
One holding from Toorak Road, 417 St Kilda Rd is also about 500 metres from the new Anzac station.
The deal comes 10 months since BayleyStuart paid Australian Unity a headline price of c$41.75m for 468 St Kilda Rd.
That result was against a $62m valuation.
Also late last year, Marwood Property, in its maiden office investment, acquired the former ANL House at 432 St Kilda Rd for $28m – a 15.7pc fully let yield.
Edinburgh based Abrdn, also once known as Standard Life then Aberdeen Asset Management, was that seller – paying $41.6m in 2014.
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