Selling for the first time in over sixty years, VACC House at 466 St Kilda Road has been sold for about $95 million.
The vendor was the Victorian Automobile Chamber of Commerce. VACC was founded in 1918 and is an automotive industry employer association that ‘protects and promotes the interests of its 5000 members’.
The sale was arranged by Langton McHarg, Paul Kempton, Nick Rathgeber and Leigh Melbourne of JLL Melbourne and Peter Bremner and Trent Hobart of Colliers International.
The purchaser was Abacus Property Group, a leading diversified property group with total assets of about $2.4 billion. Abacus listed on the ASX in 2002 and, with a 44% holding, one of its larger investors is the Kirsh Group, a Swaziland based, privately-held investment group founded by Nathan Kirsh.
According to St Kilda Road Cityscope, VACC House is a 1960s, three-and-eight-storey office building designed in a stepped form. The foyer retains the marble support of its original staircase which once featured marble-clad cantilevered steps. The 14,000 sqm building has car parking for 180 vehicles and is fully leased with major tenants including VACC, Jenny Craig and Macquarie Leasing.
The property last traded at 35,000 pounds in 1956. The latest sale, at approximately $95 million, represented an initial yield of 5.16% on a passing income of $4,900,000 (net).