Boston’s AEW Capital Management pays $200 million for Melbourne CBD office
Boston’s AEW Capital Management is paying more than $200 million for a 22-storey office in Melbourne’s tree-lined Queen Street.
AEW is acquiring the asset off-market from Challenger, which we reported in 2011 paid FKP $81 million for it.
It is AEW’s first Melbourne acquisition.
At the south-west corner of Flinders Lane, 31 Queen Street did enjoy view lines to the Yarra River, and Southbank, over the low-rise buildings next door.
However with Caydon developing the former Fletcher Jones building at 1-5 Queen Street into a 24-storey hotel, this aspect is lost.
Number 31 Queen Street contains five levels of car parking with 172 bays. It was completed in 1976 and renovated between 2007-2011 at a cost of $13.7 million.
It offers 19,213 square metres of area.
JLL’s Nick Rathgeber and Leigh Melbourne brokered the sale of 31 Queen Street on a yield of about 5 per cent.
Their deal comes two weeks after it was revealed Dexus was in due diligence to snare two office buildings at the north-west corner of Collins and Exhibition streets from QIC.
Last September, Dexus paid $230 million for two office buildings at the north-east corner of this intersection.
In October, Charter Hall paid $140 million for a rundown office a 555 Collins Street, next door to another asset it owns, 55 King Street.
In November, Industry Superannuation Property Trust acquired three properties from Victoria University – and committed to building a 32-level vertical campus, which it will lease to the school.
Last month, GPT Wholesale Office Fund paid $342 million for the half-share of 2 Southbank Boulevard, Southbank, which it didn’t own. GPT had valued its half share at $279.9 million last June.
