Indonesian investor buys legal precinct office

Lendlease recently paid $203m for Russell Kennedy’s headquarters, near 235 Queen Street.

An Indonesian investor, in its maiden Australian purchase, has snapped up the former Valuer General’s office in Melbourne’s legal precinct.

The price for 235 Queen Street – $45.4 million – is some 20 per cent over expectation.

It also reflects a low 3.99pc passing yield.

Colliers’ Oliver Hay, Daniel Wolman and Leon Ma with MP Burke Commercial’s Pat Burke represented the vendor, the Bardas family.

Thomson Geer director Eu Ming Lim acted for the buyer.

235 Queen Street

On a 454 square metre block at the south west corner of Lonsdale St, the 11 storey investment is fully leased.

It contains 3878 sqm of modernised office area and ground floor retail (story continues below).

A telecommunications tower rented to Telstra is on the rooftop.

“The sales campaign generated excellent enquiry from active and passive investors, owner occupiers, hoteliers and developers from Australia and countries across wider south east Asia such as Malaysia, China and Singapore,” Mr Hay said.

“We have handled some very prominent CBD office buildings in recent times but this was a major legal precinct corner and the market reacted accordingly,” according to the executive.

The result is especially strong given the short Weighted Average Lease Expiry, he added.

Mr Burke said the city continues to be highly regarded by offshore groups.

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Marc Pallisco

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