Ground level: The Victoria University building at 300 Flinders Street.

Ground level: The Victoria University building at 300 Flinders Street. Photo: Luis Enrique Ascui



Two Singaporean listed companies have splashed out a combined $226.1 million to buy four Melbourne properties over the past month.


Victoria University today announced it had sold its 12-level office building at 300 Flinders Street to the Singapore exchange listed Hotel Grand Central group for $48.5 million.


The Flinders Street sale follows an unprecedented buying spree by another Singapore development company, Hiap Hoe, who snapped up three large Melbourne sites in as many weeks for a total of $177.6 million.


Savills' directors, Clinton Baxter and Nick Peden, said the strata property at 300 Flinders attracted a yield of 8.3 per cent yield with most of the interest coming from offshore investors, particularly Singaporean and Malaysian firms.


"The sale . . . is a further demonstration of the exceptionally strong off-shore buyer demand for high quality CBD investment assets," said Savills' director Nick Peden.


The property was purchased with a seven-year lease to Victoria University, which pays $4,032,000 a year with a fixed 3.5 per cent per annum increase, Hotel Grand Central told the Singapore exchange.


"The proposed acquisition will enable HGC to diversify its investments in Australia to the commercial market," the company said.


Two years ago Victoria University off-loaded the car park component of the same building for $28.2 million. It purchased the property from mortgagees in 1993 for $15.9 million.


Foreign investors are buying about 25 per cent of commercial properties offered in Melbourne's CBD, a record level, Savills maintains.


Hiap Hoe's first foray into Melbourne property came early last month when it brought a development site from MAB Corporation for $28.8 million.


That was quickly followed by the purchase of 380 Lonsdale Street, a commercial car park, office and retail complex for $43.8 million.


Last week Hiap Hoe made three in a row, snapping up mixed-use retail and office at 206 Bourke Street for $105 million.


Recent Singaporean purchases:



  • 6-22 Pearl River Road, Docklands, $28.8 million



  • 380 Lonsdale Street, Melbourne, $43.8 million.



  • 206 Bourke Street, Melbourne, $105 million.



  • 300 Flinders Street, Melbourne, $48.5 million.