St Kilda Road Office Building Sold for $42 Million

St Kilda Road Cityscope reports this week that there has been almost $370 million worth of commercial property transacted in the last quarter. One of these sales is that of 324 St Kilda Road, Southbank. The vendor, Lester Property Investments Pty Ltd, has made a $20 million profit over 4 years after selling the building last week for $42 million. The Lester group is a family run investment and development group led by Russell, Adrian, Richard and Stuart Lester, all of Western Australia. They purchased the already refurbished building for $22 million in 2013 and focused on achieving 100% occupancy. 

The purchaser was Harbour Claremont Pty Ltd, a company associated with Glorious Sun Enterprises Ltd. Glorious Sun Enterprises listed on the Hong Kong Stock Exchange in September 1996. Its main business is that of fashion apparel and it owns popular brands such as JeansWest, Roxy and Quicksilver.

According to St Kilda Road Cityscope, 324 St Kilda Road is an eight storey glass-fronted office building with a 70-space car parking station. With a building area of 7,101 sqm, it sits on a site area of 1,163. It is fully leased with occupants including Westfarmers, Tabcorp and Crawford & Co.

The sale of the property represented an initial yield of 5.83% on a passing income of $2,450,000 (net).