Credit Suisse selling 505 Little Collins Street for c$160m

Credit Suisse paid $83 million for 505 Little Collins Street in 2008.

Credit Suisse Asset Management is speculated to be selling a Melbourne CBD office for nearly $160 million as it continues to reweight its national commercial real estate portfolio.

An offshore investor is undertaking due diligence on 505 Little Collins Street according to sources.

The property hit the market in September – at about the same time the vendor teamed with Vantage Property Investments to pay JP Morgan Asset Management $125m for St Collins Lane, a renovation of the mall for years known as Australia on Collins, also in Melbourne.

Last week Credit Suisse sold a Perth CBD office for $55m to a business of mining billionaire and philanthropist Andrew Forrest.

505 Little Collins St has doubled in value since 2008

Over 11 levels, with 18,000 square metres of B-grade commercial area, nine per cent of which is vacant, 505 Little Collins St includes 100 car parks.

It has been renovated several times including since Credit Suisse bought it for $83m in 2008 (story continues below).

On an island site also with frontage to Church and St James lanes, surrounded by taller towers, the land has long term development upside.

CBRE’s Kiran Pillai, Scott McGlone and Mark Coster with JLL’s Leigh Melbourne and Nick Rathgeber were the brokers.

The speculated sale price would reflect a sub five per cent gross yield.

Elsewhere in the Melbourne CBD, in July, Singapore’s TE Capital paid 3L Alliance $145m – a 4.8pc passing yield – for the 21-level, B-grade KTS House commercial building at 350 Queen St.

Two months later Dexus sold 440 Flinders Street – which rises 22 floors and contains 38,000 sqm of A-grade office space – to Deka Immoblien for a speculated c$440m.

Also in September, it was reported Futuro was in a c$210m negotiation to buy 235-251 Bourke St – a 22-level mixed use investment on 3099 sqm – from two parties, RMIT and the Chan family.

Share or Recommend article

Marc Pallisco

A former property analyst and journalist, Marc is the publisher of realestatesource.com.au.

Marc Pallisco