606 St Kilda Rd, Melbourne
Mar 2016 Purchase Price
Jan 2018 Disposal Price
A high quality office building with terrific fundamentals and good scope for strong income returns and capital growth via a hands on management and leasing approach.
606 St Kilda Road, Melbourne was rebuilt and extended in 2003 to provide 10 levels of prime office accommodation, ground floor and basement parking and an on-site café, offering a total net lettable area of 8,647m² with 141 car spaces.
(24-month project timeframe)
Transaction Analysis from Acquisition to Disposal
|Purchase Price||$40.00 million||$57.50 million|
|Net Income p.a.||$2,812,000||$3,378,232|
Past performance is not a reliable indicator of future performance.
Background and OpportunityWe identified the asset as a quality St Kilda Road office building with sound fundamentals and ideal scope for rental appreciation and capital growth via a hands-on management and leasing approach. BSC acquired the asset in March 2016 and promptly repositioned the building by modernising the lobby and lifts. Key achievements in less than two years of ownership included:
- Securing 22 leases.
- Maintaining 100% occupancy throughout ownership period.
- Increasing net income by more than 20%.
- Generating strong cashflows with incentives well below market rates.
- Significantly enhancing the asset’s brand and tenancy profile.