Foreign Property News | Posted by Aye Myat Thu
SC Capital Partners is set to make another purchase in Australia under its RECAP fund series, just one month after buying a retail portfolio in Sydney.
The Singapore-based private equity firm has entered a binding agreement to buy the former St Kilda Road police complex in Melbourne for A$107 million ($73 million) with the fund manager helmed by Thai financier Suchad Chiaranussati planning to reposition the property for commercial office use.
Malaysian developer UEM Sunrise sold the 1984-vintage building at 412 St Kilda Road to SC Capital’s fund after plans to convert the property into a Zaha Hadid-designed luxury apartment fell through following the death of the architect in 2016. UEM Sunrise had acquired the property in 2015 for A$58 million.
SC Capital’s acquisition comes just over five months after the firm reached a final close of $850 million on its latest RECAP fund.
“This acquisition confirms our belief in the St Kilda Road office market,” said Suchad Chiaranussati, chairman of SC Capital Partners.
“With vacancy at sub-six percent, the lowest since July 2001, supported by limited supply and robust tenant demand, the property is very well positioned to deliver strong performance.”
Based on the 19-storey property’s net leaseable area of 16,285 square metres (175,291 square feet), the private equity firm is paying the equivalent of A$6,576 per square metre for the asset.
Ref: Property Report
