Developer and shopping centre owner John Beville has sold a Melbourne city fringe office for $163 million – almost twice the $84 million price he paid in 2014.
The seven-level complex at 509 St Kilda Road (pictured top and left) occupies a 6070 square metre block – the joint largest site area of any commercial office in the precinct.
With 325 car parks the building contains 19,645 sqm of lettable area fully leased to tenants including AIA Australia, Fair Work Australia, Fuji Xerox and Webjet.
Constructed in the 1990s by Lendlease, the building backs on to Fawkner Park making it an attractive residential development prospect.
CBRE agent Kiran Pillai said the sale, to a China-based investor and residential developer, valued the land at $8300 per square metre.
Based on the potential annual rent the office could return ($8.1 million), it is selling on a 4.96 per cent market yield.
“The deal is the latest transaction to have been completed on an unconditional basis without due diligence and demonstrates what is achievable when good process and strong competition come together,” the broker said.
The deal comes seven months after the Victorian Automobile Chamber of Commerce banked $95.4 million from the sale of 464-466 St Kilda Road, nearby.
Next door to this, JLL is marketed a 1930s low-rise apartment and office complex at 545 St Kilda Road as a development site. The 25 strata owners are set for a circa-$30 million payday according to the brokers Alex McColl and Michael Godfrey.