German Group Expands CBD Footprint
Deka Immobilien has bought the 22-level 452 Flinders Street tower for more than $450 million, giving the German investor neighbouring A-grade office assets in the Melbourne CBD.
Across Custom House Lane, Deka Immobilien also owns 15 William Street, a 20-level tower that it bought for $167 million in 2009. Both buildings have frontage to Flinders Lane.
The 452 Flinders Street tower was bought from Dexus Wholesale Property Fund at an 11% premium to the property's June book value. The Dexus fund paid $194 million for the tower in 2011 before undertaking a foyer refurbishment overhaul and leasing overhaul, taking it to 100% occupancy with a weighted average lease expiry of 6.3 years.
The 38,000 sqm building comprises 17 levels of office space, a 3-level basement car park, ground floor retail and end-of-trip facilities.
South Melbourne Office Market Attracts New Development
Pallas Capital and development arm Fortis have bought a South Melbourne site for $6.9 million, and will build a 6-level office building with an end value of $27.5 million.
The 496sqm 18-22 Thomson Street property currently has a 1970s 3-level office building and was sold by the Appel family.
Fortis recently bought 10-12 Male Street & 41A Black Street, Brighton for $14.25 million and will develop an 16-apartment project on the 2,192sqm corner site.
Pallas Group, the parent company of Pallas Capital and Fortis, is also planning a $300 million mixed-use development in Clifton Hill, on a 5,500sqm site at 612-614 Smith Street that is directly opposite Development Victoria’s Fitzroy Gasworks project.
Disclosure: The weekly Fitzroys Property Wrap is for information only on transactions in the Melbourne property market. Fitzroys provides this information as a public service. We are not purporting that all sales and leases within this report were transacted by Fitzroys. Terms/Privacy © Copyright 2020 Fitzroys.