Computershare checks out for lucky $88,888,888
LYZ Property Group, a subsidiary of Chinese developer Hengmao Group, has made the ultimate investment in good fortune with an $88,888,888 acquisition of Computershare’s headquarters in Melbourne.
When the financial services firm put its Abbotsford headquarters on the market in April in a sale-and-leaseback deal, it was thought the property could fetch around $80 million.
The Chinese buyer has topped that expectation and added some sparkle for a property which, with its riverside views, is well placed within the traditional feng shui system.
The price is especially auspicious, comprised of eight times the number eight. Last year, a Chinese family family paid $8,888,888 for a small office building on Melbourne’s Collins Street.
In that sale it was Phil Mehrten, the founder of Melbourne construction firm Probuild and his two investment partners, who were on the receiving end of a lucky number, which came in at $2.5 million above reserve.
CBRE agents on the Computershare deal, Mark Wizel, Lewis Tong, Mark Coster, Tim Grosmann and Kiran Pillai declined to comment.
The Abbotsford deal is step up for LYZ Property Group, which first made its presence felt in Melbourne in late 2010 and is best known for its Chiara and Lucia apartment projects.
The Melbourne property arm of China’s Hengmao bought a development site in South Yarra’s Daly Street from the prominent Deague family for $28.5 million.
The deal included the neighbouring historic Airlie Mansion, the former home of prime minister Stanley Bruce.
Based in Nanchang in China’s south-east, Hengmao is a powerful player. It has developed more than 2 million square metres of residential property and mixed-use projects.
But its investment strategy is maturing in Melbourne, as it begins to put together a portfolio of assets that deliver immediate commercial office returns, while retaining development potential in the longer term.
In April, it snapped up a 4509 sq m commercial building leased to Snooze and National Storage in Melbourne’s Hawthorn for $17 million.
Computershare has an initial seven-year, triple net leaseback over the facility with options until 2029. The starting rent will total $5.3 million annually.
The two-level office building at 452-484 Johnston Street in Abbotsford comprises around 16,000 square metres of office space, with 485 car spaces.
The property sits on 16,920 sq m of commercially zoned land, with frontage to Johnston Street and the Yarra River.
There has been plenty of action in Melbourne’s suburban office markets this year, including Frasers Property Australia selling a two-asset office portfolio.
