Real IS has picked up another Melbourne office – this time in South Yarra.
The German fund manager is paying $73.5 million – a price which reflects a 4.5 per cent yield – for 11 Wilson Street.
The nine level, 6381 sqm building replaced the Jam Factory car park which the vendor, Bill McNee’s Vicland, acquired from Newmark Capital for $12.6m in 2018.
Elsewhere in Melbourne, Real IS holds the Defence Plaza at 655-661 Bourke St in the CBD.
Late last year the manager spent $97m on Sydney’s Surry Hills House at 10-14 Waterloo St and the neighbouring office, 1 Lacey St.
In 2018, it outlaid $29m for Canberra’s Maddocks House.
The group also owns two Adelaide commercial assets.
The South Yarra office is Real IS’ 13th Australian purchase since 2005; it manages nine now, estimated to be worth a total of nearly $1.5 billion.
11 Wilson Street
The Premium grade asset is fully leased with a Weighted Average Lease Expiry of seven years.
Co-tenancy group The Commons occupies almost half.
Vicland has its headquarters on the top floor.
There are 13 basement car parks.
“In the last decade, we haven’t seen buildings of this quality hit the market in Melbourne’s city fringe,” Mr Wolman said (story continues below).
“We received very genuine interest from buyers all over Australia as well as Asia, Europe and America,” he added.
“The building is perfectly positioned to benefit from uninterrupted views across the Melbourne CBD and Port Phillip Bay”.
Wilson St is close to the Jam Factory which is set for an extension incorporating apartments, a hotel, offices and additional retail.
Elsewhere in the suburb, a little closer to the city and train station, Goldfields is completing a 24-storey office; this week it secured myDNA as a tenant for 1187 sqm on an upper floor.
Oreana Group has also earmarked a hospitality based mixed-use project on two sites it acquired for a total of c$53m in May.
Collins St in South Yarra
Mr McNee said 11 Wilson St was constructed to fill a gap in the market for high-quality product.
“I live…and have had several different offices in the area for many years,” he added.
“South Yarra has always been missing…a top quality premium style building like you would find on Collins St,” according to the developer.
“The suburb needed something different, modern, fun and high end.
“It is one of Melbourne’s most affluent city fringe commercial destinations with exceptional amenity and connectivity”.
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