The private family office of Tong Eng Group's Group Managing Director Teo Tong Lim has emerged as the buyer of the Myer Family Investments holding at 312 St Kilda Road.
Leased to major tenants such as Healthscope, Vestas and Manpower Services, the prominent seven-level building and car park is located above the St Kilda Road market, 1km south of the Melbourne CBD, and offers protected views across the Melbourne CBD and Royal Botanic Gardens.
It has a net lettable area of circa 10,000sqm and includes a major commercial car park with 268 vehicle capacity.
CBRE’s Kiran Pillai, Luke Etherington, Mark Wizel and Lewis Tong negotiated the sale, with the price reflecting a passing yield of 4.66% on a circa 90 percent occupancy rate.
“There has been huge interest in the St Kilda Road market in recent times, with several major transactions taking place along the boulevard over the past 12 months,” Mr Pillai said.
“The market fundamentals are strong and effective rents have risen significantly in a short period of time, which has helped drive interest from local and international investors. This result has reset the pricing benchmark for St Kilda Road investments, with the depth of buyer demand a testament to both the property and the strength of the market.”
Tong Eng Group Director Emilia Teo said the group was extremely pleased to acquire one of St Kilda Road’s most iconic properties, also known as the Gateway building.
“We are confident that the acquisition presents good long-term value for our shareholders, with positive rental reversion and is a reflection of the prominence of the building and the Myer Family's commitment in maintaining and nurturing the asset,” Ms Teo said.
Myer Family Investments Chief Executive John Russell commented; “We are delighted to have reached this milestone. The Gateway building has been part of the Myer Family portfolio for more than a decade. Tong Eng understood the unique, strategic nature of the building and we are confident they will have a positive impact as the future owner.”
MFI’s Chief Investment Officer Michael Kelly added; “We are very pleased with the process that has delivered this outcome. The CBRE team did a fantastic job connecting with the right parties and ensuring maximum exposure for the building. Tong Eng was highly professional and committed throughout, which is reflected in their position as the successful bidder.”
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About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2016 revenue). The company has more than 75,000 employees (excluding affiliates), and serves real estate investors and occupiers through more than 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2016 revenue). The company has more than 75,000 employees (excluding affiliates), and serves real estate investors and occupiers through more than 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
