Hiap Hoe acquires 380 Lonsdale Street in Melbourne for A$43.8m
Second strategic overseas acquisition in two months.
Singapore Mainboard-listed property developer, Hiap Hoe Limited (Hiap Hoe) announced its second strategic overseas acquisition in two months with the acquisition of 380 Lonsdale Street, a commercial building comprising a 445 bay commercial car park, 5,130 sqm of office accommodation and ground level retail tenancies for A$43.8 million.
The asset sits on a 3,165 sqm site at the corner of Lonsdale Street and Elizabeth Street, in the heart of Melbourne’s Central Business District.
Mr Teo Ho Beng, Hiap Hoe’s Executive Chairman and Chief Executive Officer, said, “We are pleased to have secured this unique opportunity to fast track our overseas expansion and anchor our presence in Melbourne. Together with our recently announced 6-22 Pearl River Road acquisition, we hope to achieve economies of scale and better cost efficiencies through the intended redevelopment of these properties.
“380 Lonsdale Street is a significant commercial asset located in a prime central CBD location, presenting the Group with significant future redevelopment and growth potential. Given the strong growth of Melbourne’s CBD workforce and residential population, interest from homeowners and investors in well-located residential and commercial developments has been steadily rising. This bodes well for the planned redevelopment of 380 Lonsdale Street.”
The acquisition of 380 Lonsdale Street comes with an approved planning permit to develop an iconic 46-level mixed-use tower. Under the approved plans, the development will feature ground floor retail, commercial office suites, 627 residential apartments and a 740 space car parking facility (comprising 295 car parks dedicated to the apartments and 445 bays for the commercial car park). This exciting development option will generate future growth and create value for its shareholders.
The centre is located within a strong catchment area with high retail visitor traffic, nearby Melbourne’s retail core comprising Melbourne Central Shopping Centre and Train Station, the new Emporium Shopping Centre, the recently refurbished iconic Melbourne’s GPO, major department stores and the Bourke Street Mall.
Hiap Hoe said investor interest in the area has been positive and a sovereign wealth fund has acquired an interest in the new Emporium Shopping Centre, which will feature a mix of Australia and international designers, innovative concepts and flagship stores, and world class architecture.
The property is also immediately to the east of the legal precinct, north of the financial precinct, and south of the education precinct. Nearby universities include RMIT University (City Campus), Central Queensland University, Charles Stuart University, Victoria University (City Queen Campus) and The University of Melbourne. The area also offers a range of lifestyle amenities, cafes, bars and restaurants in nearby laneways.
Melbourne’s CBD receives more than 1 million international visitors per year and the number of weekday local visitors to the area is estimated to be approximately 770,000 visitors per day. With the growing visitor numbers and no new car park developments in the vicinity, 380 Lonsdale Street is well placed to meet the needs of the business community, shoppers and visitors.
The Group intends to fund the acquisition of 380 Lonsdale Street with a combination of internal resources and debt. CBRE Australia and Thomsons Lawyers acted as Broker and Legal Advisor to the Group on the 380 Lonsdale Street acquisition and the recent 6-22 Pearl River Road acquisition.