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An 18-storey building in the heart of Melbourne has changed hands for $236 million.
330 Collins Street, which is home to 18,000 square metres of net lettable area, was bought by HThree City Australia and co-investor City Developments Limited (CDL). This is HThree’s second acquisition in Australia after making their first foray into the Australian commercial investment scene last September, buying 446 Collins street for $72.63 million.
Clearly keen on the area, the investment firm, which is based in Singapore, is betting big on Melbourne central business district’s future strong performance.
Kevin Kang, chief executive of HThree, said: “We are pleased to acquire 330 Collins Street, an iconic asset on a prime Collins Street corner. We believe that Melbourne’s CBD will continue to bounce back strongly, and that 330 Collins Street is well placed to benefit from the increasing demand for well-located, quality office space.”
Currently leased at 90 per cent, it also boasts a number of highly desirable amenities in today’s flexible work environment, including lockers, changerooms, bike storage and 43 car bays, as well as numerous food and beverage options on street level.
The building has a 4.5-star NABERS energy rating and 5-star NABERS water certification.
The deal was brokered by Cushman & Wakefield’s Mark Hansen, Leigh Melbourne, Nick Rathgeber and Josh Cullen and CBRE’s Mark Coster, Kiran Pillai, and Scott McGlone.
Sherman Kwek, CEO of CDL Group, said the partnership on this property represented a great opportunity for the firm, which is known for its residential building projects, to branch out into office space.
“The joint acquisition of such a rare trophy asset at the heart of the Melbourne CBD marks our expansion into the Australian office sector and complements our focus on strengthening our recurring income.
“On the back of strong economic fundamentals, Australia’s office market is poised for recovery and 330 Collins Street presents a significant opportunity to unlock value. We are grateful to HThree for their sourcing capability and strong execution,” Mr Kwek said.
HThree will manage the asset, with the aim of increasing value through active leasing and asset enhancement initiatives.
ABOUT THE AUTHOR
Juliet Helmke
Based in Sydney, Juliet Helmke has a broad range of reporting and editorial experience across the areas of business, technology, entertainment and the arts. She was formerly Senior Editor at The New York Observer.
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