CEL Australia buys office building for $45m
CEL Australia, an offshoot of Singapore-listed Chip Eng Seng, sealed the deal this week for the large, mirror-clad building on the corner of Kings Way and St Kilda Road.
The transaction caps a flurry of sales to offshore developers this year.
Earlier this year, CEL inked a deal to buy a prime development site, at 170 Victoria Street, from Melbourne-based developer Grocon for $32 million. It intends to build up to 1000 apartments on the land, part of the former Carlton & United Brewery site.
Late last year it gained planning approval for a 71-storey skyscraper on the corner of Bourke and Queen streets called Tower Melbourne, which caused controversy over its height when it was first mooted.
"CEL are obviously investing in Melbourne. We're very happy to build and reinvest here. We're certainly here in Melbourne for the long term," the group's Tim Pearce said. He would not be drawn on further details of the purchase.
CEL Australia uses space on level nine of 420 St Kilda Road, the building it purchased, as the headquarters for its small team of Australian staff. It is expected it will use a larger portion of the office to establish a permanent corporate presence in Australia.
Other tenants in the 10,528-square-metre building include an ANZ Business Centre, Intergraph Corporation, Harris Scarfe and Technology One.
The sale was negotiated between Savills Australia's Clinton Baxter and Thomsons Lawyers partner Eu Ming Lim acting on behalf of the vendor Queen Central Pty Ltd.
The price represented a strong initial yield of 8.1 per cent net, and a building rate of $4300 a metre, Mr Baxter said.
CEL is part of a large wave of offshore players looking to expand in Melbourne's apartment and office market. "In the past six months Savills has sold $343 million worth of Melbourne commercial properties, with only $32 million worth selling to local buyers," Mr Baxter said.
Frequently Asked Questions about this Article…
CEL Australia is the Australian subsidiary of Singapore-listed Chip Eng Seng. They recently purchased a 12-level office building on St Kilda Road for $45.28 million.
The purchase is significant as it marks CEL Australia's continued investment in Melbourne, highlighting their long-term commitment to the city's property market.
CEL Australia plans to use a larger portion of the office building to establish a permanent corporate presence in Australia, with their headquarters already located on level nine.
Earlier this year, CEL Australia bought a prime development site at 170 Victoria Street from Grocon for $32 million, where they plan to build up to 1,000 apartments.
The building houses tenants such as ANZ Business Centre, Intergraph Corporation, Harris Scarfe, and Technology One.
The purchase represented a strong initial yield of 8.1% net and a building rate of $4,300 per square metre.
CEL Australia's investment is part of a larger trend of offshore developers expanding in Melbourne's apartment and office market, with significant sales to international buyers in recent months.
The sale was negotiated by Savills Australia's Clinton Baxter and Thomsons Lawyers partner Eu Ming Lim, acting on behalf of the vendor Queen Central Pty Ltd.
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