Refurbished Melbourne CBD premises attracts offshore buyer
Offshore investors continue to show interest in the Melbourne CBD commercial property market with Centuria Property Funds today announcing that it has entered an unconditional contract to sell a refurbished office building at 50 Queen Street, Melbourne for $40.7 million to a European investor.
Jason Huljich, CEO of Centuria Property Funds, said of the sale: “In a competitive Melbourne leasing market, Centuria has taken a proactive approach to making building improvements in order to attract quality tenants and increase rental levels.”
He said that the strong sale price reflected Centuria’s active management approach to the property which has comprised several upgrades, including the refurbishment of the ground floor foyer, lift controls and air conditioning controls.
“The property valuation was $26.5 million when Centuria took over the management of the Fund in 2010. The strong price we achieved is testament to our ability to increase the rental levels of the buildings Centuria owns and in the case of 50 Queen Street, we achieved a 56% increase within four years”, said Mr Huljich.
Constructed in 1973 in the centre of Melbourne’s CBD, 50 Queen Street comprises 9,236 square metres of net lettable area on an island site of 917 square metres with frontages to Queen Street, Flinders Lane and Ryrie Lane.
The 16-level office building is currently 89.5% occupied by 24 office tenants and has a WALE of 2.5 years by income. The ground floor tenancies are occupied by 7-Eleven and Shuji Sushi.
The building also boasts 17 car spaces, including 12 basement parking spots and 5 open spaces in Ryrie Lane.
Mr Huljich concluded by reiterating that adding value to properties is a key tenet of Centuria’s strategy and a hallmark of their track record of success.
“The sale price reflects the strength of Melbourne capital markets with a sale rate per square metre of approximately $4,400. It also serves as a positive indicator for Centuria’s ability to deliver outstanding returns for investors”.
Langton McHarg or Knight Frank introduced the European purchaser in the off-market transaction.
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For more information or to arrange an interview, please contact:
Centuria Property Funds
Phone: (02) 8923 8902 / 0413 121 121
Senior Account Executive
Phone: 02 9018 8603 / 0412 552 004
Centuria Property Funds has over $1 billion of property under management in 22 unlisted property funds. In addition Centuria has completed 21 property funds with a combined value of over $454 million. Centuria Property Funds is a wholly-owned subsidiary of Centuria Capital Limited, an ASX-listed diversified funds manager with $2 billion in funds under management. ASX Stock Code CNI. www.centuria.com.au