Myer Melbourne building stake quietly sells to co-owner
Charter Hall has quietly sold its 16.7 per cent stake in the Myer Melbourne building.
Announced in reporting for the Long WALE REIT (CLW), worth c$73.2 million, the deal is with Steven Sewell’s Abacus Group, with which it partnered to buy a two thirds interest in 2021.
They paid $270.4m.
That agreement priced the eight level, 48,000 square metre Bourke Street Mall asset at $405.6m.
Based on the price for the latest co-sale – in line with valuation and reflecting a circa 6.5 per cent capitalisation rate – the complex would be worth about $438.3m.
Vicinity Centres, an active seller in recent years (but also an occasional buyer, including recently for a Perth shopping centre stake), holds the balance.
Parties reweigh
CLW also this financial year sold the Redbank Plains Retail Centre to Westbridge Funds Management for $23m (story continues below).
In another deal, for a different fund, but unusual in it being off-market with an interest – the manager offloaded 200 Queen Street, in Melbourne’s CBD, to the key occupier – Barristers Chambers Limited.
That result – $190m according to agency sources – is higher than what would have been achieved following a public campaign, given the current low-confidence backdrop.
Last September meanwhile, Abacus divested a four storey, 9243 sqm Port Melbourne office for $52m.
Developed for British Aerospace, but first occupied as Kraft’s headquarters, it occupies a 1.17 hectare Commercial 2 block within the employment precinct of Fishermans Bend – at 480ha, the country’s largest urban renewal precinct, expected to accommodate billions of dollars worth of property.
Local private investor Ian Davis was the buyer.
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