Melbourne’s First Big Sale for 2017
A private investor has purchased 3 towers at The World Trade Centre in Melbourne for $267.5 million.
Three towers at The World Trade Centre in Melbourne, located at 18-38 Siddeley Street, Docklands, have been sold for $267.5 million. The vendors were Clement Lee of Kew, KKR Harbourview Pty Ltd (ultimately owned by KKR & Co L P of New York) and Abacus Property Group (which listed on the ASX in 2002 and is a stapled entity that combines various companies and trusts).
The WTC, according to Docklands Cityscope, comprises five office towers, one of which fronts Flinders Street and is owned by Austreo Property Ventures Pty Ltd, a NY based Goldman Sachs Group entity. The three towers which sold, Towers 2, 3 and 4, overlook the Yarra River and are on a 13,500 sqm block with a combined net lettable area of over 50,000 sqm. Tower 2 is a 12-storey tower with two showrooms to the foyer; Tower 3 is a 14-storey concrete building with a ground floor showroom; and Tower 4 is a 15-storey office tower with a one and two-storey extension towards the river. All are linked by a three-level concourse of shops, showrooms and office suites.
The purchaser was reported as being a local private investor backed by funding from Asia. The deal was struck on a yield of approximately 7%. The property last traded at $120.4 million in August 2014 and that sale represented an initial yield of 9.30% on passing income of $11,197,200.