Big deals stack up in Melbourne office market

GPT has taken full ownership of 2 Southbank Boulevard.

Melbourne is locking in its status as the country’s most chased office market with at least two major transactions close to being finalised in deals worth close to $2 billion.

In one play, the GPT Wholesale Office Fund said it would take full ownership of 2 Southbank Boulevard after agreeing to buy a 50% interest from Singapore-listed co-owner Frasers for $326.2 million.

The deal brokered with aid of real estate agents JLL and CBRE was struck at a tight 4.8% initial yield and settlement is due in late March.

Meanwhile, the race for QIC Global Real Estate’s prized Collins St complex in the heart of Melbourne’s central business district, that has pitted listed Australian players Dexus and Charter Hall, is again likely to set benchmarks.

The pair are each tapping deep pools of Asian capital chasing Melbourne, and senior sources suggested the contest would be decided by underlying investors positioning to invest in the $1.6 billion-plus complex being sold via JLL and Savills.

The interest supports a survey of local investors saying Melbourne has overtaken Sydney as the preferred destination for Australian-based commercial property capital.

CBRE’s annual Australian Investors Intentions survey said 37% nominated Melbourne.

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