GLL Real Estate and Marprop buy 541 St Kilda Road for c$65 million

Seek occupies most of 541 St Kilda Road on a lease expiring in 2021..

A partnership comprising German based funds manager GLL Real Estate Partners, with Sydney’s Marprop, is paying close to $65 million for an office in Melbourne’s St Kilda Road.

The property, 541 St Kilda Road, was listed by Bayley Stuart in September.

The Melbourne based advisory and investor paid $47.8 million for it in 2016.

The site spreads 2858 square metres of land zoned Business 2.

Seek occupies 97 per cent of the six-storey building’s 8246 square metre area on a lease expiring in 2021 (the online recruitment firm recently pre-committed to a new headquarters under construction at 60-88 Cremorne Street, Cremorne).

Bayley Stuart acquired the office in 2016.

Also with 126 car parks, 541 St Kilda Road returns annual rental of $3.28 million.

It was targeted to investors and developers: the site is adjacent to the MCC Albert Ground and a short walk to Fawkner Park.

The Australian reported the office transaction to GLL Real Estate and Marprop with this item. GLL was acquired by Macquarie Group in February.

CBRE’s Kiran Pillai and Luke Etherington with JLL’s Paul Kempton and Leigh Melbourne represented Bayley Stuart.

The sale comes a month after Sydney investor John Beville sold 509 St Kilda Road for $163 million to a China-based investor and residential developer. On a much larger 6070 sqm block, this seven-storey office, with 19,645 sqm of area, cost Mr Beville $84 million in 2014.

Next door to the Seek office, the strata owners of apartments and offices within a three-storey brick building on a 2865 sqm block at 545 St Kilda Road, have pooled together to sell. This site was listed in September carrying price expectations of about $30 million.

Marc Pallisco

A freelance property writer and analyst, Marc is a co-founder of realestatesource.com.au.

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