FKP to sell 399 Lonsdale Street

FKP has quietly listed another Melbourne asset for sale.

The developer and fund manager, which recently relocated its headquarters from Brisbane to Sydney, can expect some $35 million, sources say, for the fully-leased office at 399 Lonsdale Street.

The 11 storey building, on the south-west corner of Hardware Lane, was developed in 1986 and refurbished in 1993, 1997 and 1999.

It includes 10,176 square metres of lettable area including ground floor retail.

Taylors College occupies the office space.

Last March, education entrepreneur Shesh Gale, owner of the Melbourne Institute of Technology, paid $15m for the nearby Argus building at the north-west corner of La Trobe and Elizabeth streets, which will reopen as a school after a refurbishment.

FKP hoping to break even

FKP paid $30.2 million for 399 Lonsdale St in July 2006 (story continues below)

It has appointed Knight Frank’s Paul Burns and Langton McHarg and Colliers International’s Nick Rathgeber and Leigh Melbourne to dispose of it.

Earlier this month the investor sold Challenger a 27 level, 19,460 sqm office, 31 Queen Street, in the city, for $81m.

FKP outlaid $41 million for that investment in October 2003, transferring it to another managed funds for $51.5m two years later.

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Marc Pallisco

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

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