Spotlight Pays $185m for Toorak’s St Germain
A prime office asset considered one of the best in the country has sold for $185 million.
Melbourne developer Bill McNee offloaded St Germain at Toorak to Spotlight Property Group.
The group manages property for the Spotlight Group, which counts Anaconda, Harris Scarfe and Spotlight among its brands.
The 12-level, A-grade office at 505 Toorak Road comprises 13,095sq m of office space on a 2661sq m site and is fully occupied with a tenant waitlist, according to Cushman & Wakefield, who transacted the deal.
Vicland Property Group took the St Germain asset to market last year, when it was tipped to fetch $200 million. McNee’s Vicland paid $80 million for the site in 2019.
Home to Coles, Kennedy, Deague Group, Kay & Burton, Scoop Wholesale, restaurant Cecconi’s and Tim Gurner’s Saint Haven, the holding is 5km from the Melbourne CBD.
Cushman & Wakefield’s Daniel Wolman, Nick Rathgeber, Oliver Hay, Leigh Melbourne and Leon Ma managed the sale.
Wolman said that the depth of buyer interest “reflected the continued divergence between prime and secondary stock”.
“This is arguably one of the best mixed-use commercial buildings in the country,” he said.
“In the current environment, capital is highly selective. Investors are targeting long-WALE, fully leased assets in blue-chip locations, and they are prepared to price that certainty accordingly.
“While secondary office continues to trade at discounted pricing, stock with strong income profiles has shown greater resilience, particularly in tightly held village-style precincts.”
Spotlight Property Group predominantly owns retail centres including properties at Bennetts Green, South Melbourne, Frankston Homemaker Centre, Carnegie, Christchurch and Hervey Bay.
It is responsible for all new site identification for Spotlight, Anaconda and Harris Scarfe, as well as the planning, leasing and maintenance of the existing portfolio, and acquisitions.
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