City fringe offices fetch $109m from Rathdrum

Terraplex has banked $67.6 million for 570 St Kilda Road.

Rathdrum Properties has swooped on two inner Melbourne offices.

In the biggest deal the group is paying $67.6 million for an eight storey investment at 570 St Kilda Road.

The vendor, Anthony Wilson’s Terraplex, outlaid $23.8m in 2012.

The latest result reflects a 5.41 per cent fully let yield.

CBRE’s Kiran Pillai, Scott McGlone and Hugh Thomson with Cushman & Wakefield’s Leigh Melbourne, Nick Rathgeber, Mark Hanson and Josh Cullen were the agents.

The transaction comes two months since Barwon Investment Partners outlaid c$75m for 607 St Kilda Rd for its Healthcare Property Fund.

Rathdrum buys into Cremorne

In a second deal, Rathdrum is paying Roche Holdings $41.5m for a recently completed seven level office in inner east Cremorne.

The sale price for 2-6 Gwynne Street reflects a 4.69pc yield (story continues below).

Roche Holdings director Nick Roche said the company holds numerous assets in the area at various stages of planning approval.

“With several projects on the drawing board for Roche Holdings to be constructed and given the strength of the city fringe office market, the family felt the timing was right to sell this asset in a market starved of good quality investment offerings,” according to the executive.

Colliers’ Peter Bremner, who marketed the asset with Rachael Clohesy and Alex Browne, and Teska Carson’s Adrian Boutsakis and Luke Bisset added that private investors, syndicates, institutions and offshore groups inspected the property.

“With yields in prime city fringe markets like Cremorne now below five per cent and capital value rates for brand new office buildings ranging between $12,000-$13,000 [per sqm], this is one of the most hotly contested markets in Melbourne and this recently completed building was highly sought after.

Rathdrum Properties, the Hannan family’s private wealth division, holds a substantial real estate portfolio including a Parramatta office which cost $37.5m seven years ago.

In 2020 the group banked $15m for an industrial investment at Melbourne’s Noble Park.

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Marc Pallisco

A former property analyst and print journalist, Marc is the publisher of