Flight Centre travel agency $62.15 deal with the Shakespeare Property Group to be completed in July 2020.
A deal has been struck for the sale of the 11-story building in St Kilda Road, Melbourne after offers were made by several investors. The building has a net lettable area of 7506sqm and is situated opposite Fawkner Park.
The property is currently occupied by five tenants and was purchased by the Flight Centre back in 2008 for $32 million. Flight Centre said it would lease back 75 per cent of the property as it has long-term occupants.
The off-market transaction was brokered by Fitzroy’s director, Paul Burns with the Shakespeare Property Group, the property arm of boutique investment manager Prime Value Asset Management.
“Ultimately, the deal was negotiated in an abbreviated timeframe and subject to a very short due diligence, 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,” Burns said.
Burns also commented that there is a hesitance in some areas of the market due to COVID-19; however securely-leased investments remain highly sort after.
