EG doubles its money in 277 William Street, Melbourne office sale
EG has sold its 277 William Street, Melbourne offices to an undisclosed Hong Kong investor.
EG, a large Australian hedge fund, exchange contracts for the sale at $93.88 million.
The Australian Financial review suggested it was bought by one of Hong Kong's richest families, the Fu family's KHI Holdings Group at a yield of 4.65 per cent.
The acquisition was the first in Australia for the company that dates back to 1947 when Y.C. Fu established the Tak Kee Shipping & Trading Company, then later branching out in hotel development with Furama Hotels.
The 12-storey office building was originally acquired by the EG Core Plus Fund No.1 in November 2015 for $45.9 million.
EG re-let over 70% of the property and undertook significant cosmetic and plant and machinery upgrades during the hold period.
The WALE of the property was also increased from 3.3 years to 3.9 years.
After a number of unsolicited approaches, EG decided to put 277 William Street on the market.
The building has a net lettable area of 12,080 sqm, 32 car bays and is located nearby Flagstaff Train Station and the Queen Victoria Markets.
EG's Daniel Farley said rhe property has been "much improved during our hold period," to become a quality B grade asset boasting a strong leasing success rate and excellent environmental credentials.
The purchaser was represented by Vantage Investments through CBRE and JLL.
