Case Study

541 St Kilda Rd, Melbourne

Jan 2017 Purchase Price


Jan 2019 Disposal Price


541 St Kilda Road, Melbourne is an eight-level commercial office building in a prime St Kilda Road location, just south of the Commercial Road intersection and within immediate proximity of the Alfred Hospital.

Comprising secure basement and at-grade parking, ground level retail and office space, and six upper levels of A-Grade office accommodation, 541 St Kilda Road has a total net lettable area of 8,247m² with 126 car spaces.

Project Strategy
Acquire on attractive metrics due to receivership sale, enhance income profile and re-position the asset as a unique and flexible offering with a multitude of uses.
Target IRR
10.0% p.a.
IRR Achieved
23.6% p.a.
(24-month project timeframe)
Transaction Analysis from Acquisition to Disposal
Acquisition Disposal
Purchase Price $47.75 million $64.00 million
Sale Date Jan-17 Jan-19
Net Income p.a. $3,040,742 $3,289,755
NLA Rate $5,791/m² $7,760/m²
Net Yield 6.37% 5.14%

Past performance is not a reliable indicator of future performance.

Background and Opportunity
BSC acquired 541 St Kilda Road in December 2016 and, within the Fund’s life, achieved several incremental gains including:
  • Development of schemes and feasibility options for conversion to hospital and aged care uses.
  • Negotiations for long term leases with several healthcare providers.
  • Enhancement of car park income for an asset that was considered to be 100% leased.
  • Maintenance of 100% occupancy throughout ownership providing for strong distributions.
  • Re-positioning of the asset ensuring it was a flexible building that could support a multitude of different uses.
This case study demonstrates BSC’s proven ability to identify and secure an appropriate asset within a target market, set and implement a strategy of incremental gains, and achieve an outstanding outcome in a short timeframe.