Flight Centre to Retain St Kilda Road Office Building

Having reported a strong six-month profit of $51.5 million last week, Flight Centre Limited has confirmed it will hold onto a St Kilda Road office it purchased at the peak of the commercial property boom in 2007, and then renovated.

Flight Centre’s Haydn Long confirmed the group will retain the 11-level office it occupies and leases to tenants, 436 St Kilda Road.

The building was put to the market last April with a guide price of between $25 million and $30 million, and after the Global Financial Crisis had grounded local property markets.

Office building values in St Kilda Road are being preserved, sources say, because of strong site sales recently to residential developers, which are proposing much higher residential proposals than the boulevard has seen before.

St Kilda Road is criticised by office tenants for not having a train station, or ground floor retail amenity.

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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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