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 $23.8 million.
Features at the time of purchase included:
Building constructed in 1990 with 7,737m2 NLA approx. (Site area 2,323m2).
Securely leased to 5 tenants – Simonds Homes, Simonds Family Office, Accolade Wines and two long-established accountancy firms.
7 upper office levels with standard floorplates 1,050m2 approx., with a base building refurbishment on Level 7.
Additional ground floor office/retail space
Two basement levels with 143 carparks.
Located 3.5km from Melbourne CBD on west-side of St Kilda Rd between Roy & Beatrice Streets.
- 30.48m street frontage to St Kilda Rd and rear access to Queens Lane
The Manager identified a compelling opportunity to secure a quality asset with repositioning potential in an improving commercial office market.
The investment strategy highlighted the need to:
Undertake Building Refurbishment.
Re-lease vacant space.
Reduce building operating costs.
Seek lease extension and market rental reviews on major tenant leases.
|Investment Returns||Acq’n 30 Sept 2012||1/5/2020|
|Capital returned to date ($)||33.0%|
|Capital returned to date |
(% of original invest.)
|Estimated IRR (5 years) – Post Fees||18.8%|
|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.