Rathdrum Properties has bought an eight-level office building in Melbourne from Terraplex for $67.6 million.  

The 570 St Kilda Road office has 7,647 sqm of net lettable area and was initially acquired by the vendor for $23.8 million in 2012. 

Terraplex extensively refurbished the property and constructed end-of-trip facilities during its ownership.  

The deal was negotiated by CBRE and Cushman and Wakefield.  

Terraplex is the trustee and manager of eight unlisted property trusts worth more than $350 million. 

The deal comes after ASX-listed Irongate Group has acquired a stake in a grade-A office building in Melbourne for $130 million last month.  

Irongate snapped up a 50% interest in the office building at 510 Church Street, Cremorne on an initial yield of 4.7%. 

The Cremorne property comprised 19,798 sqm of lettable area across nine levels of office accommodation, ground floor retail and 145 car parks.

Last November, ISPT bought the headquarters of Victoria’s Country Fire Authority in Melbourne’s eastern suburbs on behalf of its CIB fund from Singapore-based TE Capital Partners for $35.8 million.  

The 8 Lakeside Drive office building has 4,502sqm of net lettable area and is situated on a 5,456 sqm site in Burwood East – about 20km east of the Melbourne CBD. 

In September last year, Centuria Office REIT secured the office at 101 Moray Street, South Melbourne for $205.1 million, representing a 5% capitalisation rate. 

The recently constructed building was fully occupied with a 6.3-year WALE. 

Australia’s office investment market recorded $21.9 billion in transactions in 2021, up 60% on the previous year, according to Real Capital Analytics.

Interested in the office market? Take a look back at Australia’s biggest single office sales in 2021.