Melbourne fund managers trade ex-Leader Newspapers HQ
Vantage Property Investments has effectively broken even on the sale of the ex-Leader Newspapers headquarters, which it bought from News Corp Australia eight years ago.
The three-level office at 1 Chapel Street, Blackburn, is trading to Trident Capital Group, for $30.25 million.
The result reflects a 9.23 per cent passing floor.
With 5813 square metres, it was marketed as fully leased to six tenants including Community Housing, Fire Rescue Victoria and Lawrence and Hanson.
There are also 217 car parks including in a basement.
Part of the 7247 sqm Commercial 1 zoned block is permit-ready for 168 apartments.
0.17pc capital gain
Vantage Property Investments paid News Corp $30.2m for 1 Chapel St; it was mostly vacant with Leader committed to the balance until 2023.
The landlord later spent $4.4m on capital works, refurbishing the ground floor to accommodate three additional office tenants and a cafe before converting the building into a multi-tenanted investment.
When it was listed for sale, the weighted average lease expiry was 3.4 years.
The NABERS Energy rating is 4.5-star.
Vantage also secured planning approval in 2025 for two apartment buildings – of eight and nine storeys – with 168 dwellings on the rear portion, with ground-floor retail and basement parking.
CBRE’s Trent Hobart with Savills’ Nick Peden, Jamus Campbell and Tim Grant were the agents (continues below).
Office trades between fund managers
Trident will hold the property for the Pinnacle Diversified Property Fund which called on wholesale investors last month for $20m.
The balance will be funded a senior debt facility from an Australian bank.
The five-year fund is targeting an 18pc internal annual net return and initial distributions of 7-8pc paid quarterly.
Settlement is scheduled in mid-December.
The deal comes a year since realestatesource.com.au reported Accord Property sold the neighbouring Salvation Army national headquarters to Perth-based Ascot Capital.
Meanwhile, mid-last year, Pace Development Group sold a strata component of its Pace of Blackburn apartment-based mixed-use complex, abutting 1 Chapel St.
Both Trident and Vantage are Melbourne-based.
Trident was founded in 2017 by Chin He, Haydn Stewart and Jenny Wang, initially as an accounting and advisory business before expanding into property investment.
Vantage, established in 1984, is led by chief executive and owner Matt Spring, who joined in 2005 after roles with Teska Carson and CBRE.
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