Shakespeare Property Group has benefitted from the capital raising of Flight Centre Travel Group, purchasing the company's St Kilda office tower for $62.15 million in an off-market deal.

Flight Centre Travel Group has committed to lease back 75 per cent of 436 St Kilda Road, having been long-term occupants and buying the property in 2008.  

The 11-storey glass tower has a net lettable area of 7,506sqm and is on a 2,317sqm site opposite Fawkner Park.

At a glance: 

• A commercial asset at 436 St Kilda Road, Melbourne has been sold to Shakespeare Property Group for $62.15 million.
• The 11-storey glass tower has a net lettable area of 7,506sqm and is on a 2,317sqm site opposite Fawkner Park.
• The deal was brokered by Fitzroys Director Paul Burns.

Five tenants occupy the fully-leased building, including Flight Centre and soccer’s state governing body Football Victoria. 

Selling agent and Fitzroys Director Paul Burns said that whilst in some areas of the market COVID-19 has brought on a “wait and see” approach amongst buyers, securely-leased investments remain highly sought after as cashed-up investors are more motivated to set themselves in bricks and mortar with income.

“Buyers taking a long-term view beyond the COVID-19 environment recognise St Kilda Road’s fundamentals have it well-placed to maintain its strong performance of recent years.” 

“Investors have been actively pursuing St Kilda Road buildings with value-add and repositioning potential, looking to take advantage of Melburnians’ increasing preference to live, work and play across the inner city.

“My understanding is that SPG sees this as an opportunity to buy a strategically located office property, in this case, located a short distance from the future Anzac Metro station that will further enhance accessibility to St Kilda Road. 

“The dearth of investment opportunities in this precinct encouraged the buyer to act quickly, and they will now set about adding value to the property and deliver strong returns to their investors.” 

Anzac station is part of the $11 billion Metro Tunnel project and is due to open by 2025, complementing multiple tram routes at the doorstep of 436 St Kilda Road and at Domain Interchange close by.

The building is also meters from Albert Park Lake and the Royal Botanic Gardens. 

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