Podco Co-Investment Fund No. 3

570 St Kilda Road, Melbourne

With a highly regarded St Kilda Road business office address, within proximity of parkland and city access, this property was acquired in September 2012 for $23.8 million.


The property

Features at the time of purchase included:

  • Building constructed in 1990 with 7,737m2 NLA approx. (Site area 2,323m2).

  • Securely leased to 5 tenants – Simonds Homes, Simonds Family Office, Accolade Wines and two long-established accountancy firms.

  • 7 upper office levels with standard floorplates 1,050m2 approx., with a base building refurbishment on Level 7.

  • Additional ground floor office/retail space

  • Two basement levels with 143 carparks.

  • Located 3.5km from Melbourne CBD on west-side of St Kilda Rd between Roy & Beatrice Streets.

  • 30.48m street frontage to St Kilda Rd and rear access to Queens Lane

The investment

The Manager identified a compelling opportunity to secure a quality asset with repositioning potential in an improving commercial office market.
The investment strategy highlighted the need to:

  • Undertake Building Refurbishment.

  • Re-lease vacant space.

  • Reduce building operating costs.

  • Seek lease extension and market rental reviews on major tenant leases.

Investment ReturnsAcq’n 30 Sept 20121/5/2020
Capital returned to date ($)33.0%
Capital returned to date
(% of original invest.)
$5.3 m
Estimated IRR (5 years) – Post Fees18.8%
Capitalisation rate10%5.25%
Acqn Price / Current Valuation$23.8 m$60.0 m

Achievements and performance to date

The Manager has undertaken capital improvements to maintain the building’s status a modern and desirable workplace for occupants. These have included full base refurbishment to all floors, a new end-of-trip facility and a café on ground floor, along with lift, lobby and landscaping upgrades.