HThree investing again on Collins Street: sources
Eight months after making its maiden Australian investment – a mid-rise office on Melbourne’s Collins Street – HThree City is understood to be buying another 300 metres away.
The Singapore based investment house is believed to be outlaying over $230 million, which would reflect a sub six per cent yield according to agency sources, for the 16 level building at #330, on the north west corner of Elizabeth.
The vendor, AMP, which held the asset for Sunsuper, paid Challenger Financial Services Group c$107m – an eight pc return – in 2011.
CBRE’s Kiran Pillai and Scott McGlone with Cushman & Wakefield’s Nick Rathgeber and Leigh Melbourne listed the property in March.
Collins Street on the radar
On a 2073 square metre Commercial 1 zoned site with significant development upside, 330 Collins St contains 43 car parks.
The building is configured with 18,016 sqm of lettable area – retail on the ground and basement floors (the bulk of the shopping space has traded as Henry Bucks’ flagship store for decades), and A-grade offices above (story continues below).
CSBC, Directioneering Victoria, EquipSuper and National Australia Bank are key commercial tenants.
Any deal would bring the tally HThree City has spent in the street to over $300m, following the $72.625m acquisition of 446 Collins St last September.
The vendor in that case, Vantage Property Investments, outlaid $33.76m on behalf of Malaysian investors in 2015, then renovated.
With 5600 sqm over 12 storeys – the majority (3000 sqm) which was vacant, that property also has development upside, on 583 sqm at the north west corner of Fulham Place.
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