Hotel Grand Central (HGC) has reached an agreement to sell a commercial office building in Melbourne for A$80.8 million ($77.1 million).
The property – which is located at 300 Flinders Street – was purchased in 2013 in 2013 with a 7-year lease to the then-vendor Victoria University for A$51.5 million (including stamp duty.
Victoria University pays around A$5.36 million annually for rental and outings. The tenancy, expires in October.
The property comprises of a basement, ground level and another 19 levels across 3 subdivided lots. These are Lot S2 (a carpark owned by third parties), Lot S3 and Lot C1, being the common facility which is owned in equal parts by Lots S2 and S3.
The lettable area within Lot S3 comprises 13,457.5 sq m of office space and 636 sq m of retail space, plus other related areas and common property.
The buyer, an unnamed third party, has paid a deposit of A$4.04 million, HGC said in a Feb 7 regulatory filing.
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The same filing highlighted that the proposed sale transaction allows it to realise its investment in the commercial building before the tenancy matures.
“The net sale proceeds, after payment of related transaction costs, shall be placed into interest-bearing bank term deposits, pending a decision by the directors on future investment opportunities,” it added.
Shares in HGC closed down a cent or 0.97% at $1.02 on Feb 7.
Cover image: Hotel Grand Central
