GPT divests ex-Age HQ
The GPT Group has sold the high-profile ex-Media House, at the Docklands border with Melbourne’s CBD.
The fund manager is banking c$120 million, sources say – a c7.5 per cent initial passing yield – from Najee Holdings founder, Naji Imam.
Book value last December was $153m.
Expectation when it was listed two months ago circled $140m.
CBRE’s Kiran Pillai, Scott McGlone, Flint Davidson and Andrew Hunter with Cushman & Wakefield’s Nick Rathgeber and Leigh Melbourne were the agents.
GPT bought the building, 655 Collins Street, Docklands, for $102m in 2014, from the Commonwealth Property Office Fund, which was being taken over by Dexus and the Canada Pension Plan Investment Board.
It has been held by GPT’s Wholesale Office Fund.
Fully leased but vacant
With 16,620 square metres over eight levels, the Docklands office was developed 15 years ago for Fairfax Media, which largely vacated after being bought by Nine in late 2018.
Grocon was the builder and also sold it to CPOF.
Nine is committed to a head lease until 2029. Radio station division 3AW still occupies the top floor. The media group also retains use of a prominent screen staring down Collins St (story continues below).
The balance of the office has in recent years been sublet in various size configurations. With the NBN just moving out, about 10,000 sqm is for lease.
On 4533 sqm – a deck covering rail lines – at the south west corner of Spencer St, opposite Southern Cross Station, the property was marketed for its development upside with a c73,400 sqm improvement a possibility, according to the agents.
Equating to about 16 storeys, the use could include residential too.
Designer digs
Mr Imam created upmarket fashion brand Najee, which in the 1980s traded from 45 stores.
He turned to property development and investment in the 1990s.
The Collins St building is expected to be retained as an office.
In 2015 Mr Imam paid REST $98m for 460 Lonsdale St, in the city’s legal precinct.
Rising 18 levels, that investment contains 11,618 sqm of offices over 10 floors, and 293 car parks across the balance.
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