HThree City Australia Pte. Ltd. (“HThree”) and its co-investor City Developments Limited (“CDL”) have acquired 330 Collins Street, a freehold commercial office tower in Melbourne, for A$236 million from an AMP Capital separate account.

The purchase represents HThree’s second acquisition in Australia and is in line with its strategy of investing in well-located properties with strong value-add potential.

330 Collins Street is an 18-storey, A-grade commercial tower strategically located in the heart of Melbourne’s CBD, at the intersection of Collins Street and Elizabeth Street. It has over 18,000 sqm of Net Lettable Area (NLA) spread over 17 floors of tenanted office space, retail space on the ground floor and basement, as well as 43 basement car bays. The property boasts a 4.5-Star NABERS energy rating and 5- star NABERS water certification. The asset has a committed occupancy of about 90% with a diversified tenant portfolio.

With its prime location at one of the main intersections along the historic Collins Street, the property enjoys significant street frontage of 93 metres and high pedestrian traffic. The building also boasts excellent connectivity, with Flinders Street Station a 5-minute walk away and a super tram stop at its doorstep.

Mr Kevin Kang, CEO of HThree, said, “We are pleased to acquire 330 Collins Street, an iconic asset on a prime Collins Street corner. We believe that Melbourne’s CBD will continue to bounce back strongly, and that 330 Collins Street is well placed to benefit from the increasing demand for well-located, quality office space.”

The experienced HThree team, led by Mr Kang, leveraged its strong track record, in-depth market knowledge and extensive network of advisors in Australia to complete the transaction within a short nine- week window.

Mr Sherman Kwek, CDL Group CEO, said, “The joint acquisition of such a rare trophy asset at the heart of the Melbourne CBD marks our expansion into the Australian office sector and complements our focus on strengthening our recurring income. On the back of strong economic fundamentals, Australia’s office market is poised for recovery and 330 Collins Street presents a significant opportunity to unlock value. We are grateful to HThree for their sourcing capability and strong execution.”

The deal was brokered by Cushman & Wakefield’s Mark Hansen, Leigh Melbourne, Nick Rathgeber and Josh Cullen and CBRE’s Mark Coster, Kiran Pillai, and Scott McGlone.

Legal advisors to HThree on the property acquisition were David Sinn, Julia Orbach and Tom O'Sullivan from Herbert Smith Freehills. Advising on the property financing were Ken Nguyen and Sophie Ng from Ashurst.

Following the completion of the acquisition, HThree will manage the asset with a focus on driving value appreciation through active leasing and asset enhancement initiatives.