Myer Family to Offload Prime St Kilda Road Asset

The Myer family have appointed CBRE to offload a prime St Kilda Road office following more than a decade of ownership.

Price expectations are around $65 million for the 312 St Kilda Road seven-storey building, which offers views across the Melbourne CBD, Royal Botanic Gardens and Port Phillip Bay. The listing comes amid a flurry of development and sales activity in the area -- sales in August included 390 St Kilda Road for $98 million and 420 St Kilda Road for $68 million.

Myer Family Investments’ Chief Executive John Russell said of the decision to place the property on market: “After more than a decade of ownership, Myer Family Investments is pleased to offer the Gateway building at 312 St Kilda Road for sale.

"As a prime location for a boutique office, set to benefit from a vibrant St Kilda Road precinct and extensive transport infrastructure investment, the future for this building is bright. We believe this opportunity will be maximised in the hands of a specialist property group, or an investor seeking to secure stable, long term income.”

CBRE’s Kiran Pillai, Mark Wizel and Luke Etherington are the appointed agents.

Boasting approximately 10,000sq m of net lettable area, the building is leased to major tenants including Healthscope, Vestas and Manpower Services. The property, which is underpinned by a 1,906sq m site, also includes a major commercial car park with 268 vehicle capacity.

CBRE’s Kiran Pillai said the sale opportunity came amid a series of on and off market transactions in the St Kilda Road market over the past 12 months.

“With St Kilda Road’s rent growth continuing to climb and A grade vacancy at levels lower than the CBD, this opportunity is likely to catch the eye of investors looking for a best in class asset that offers real potential for solid reversionary income growth over the short – medium term,” Pillai said.

“The building represents an outstanding investment opportunity, offering a well-mixed, near fully let income, as well as a prized corner location with views like no other building in the Melbourne market. It is without question a one of a kind opportunity in a market that will continue to prosper in the years to come.”

The opportunity to acquire 312 St Kilda Road comes after a number of recent transactions in the precinct.

Vantage Property Investments recently acquired a standalone B-Grade building for approximately $69 million on behalf of private equity group KKR. Rockworth Capital of Singapore also outlaid nearly $98 million on 390 St Kilda Road and Mapletree has just acquired 417 St Kilda Road.