Centuria Property Funds, a subsidiary of the listed Centuria Capital, has sold the 11-level office building at 601 Bourke Street Melbourne to a private European fund for $29.1 million.
Since paying $23.95 million eight years ago, Centuria has strengthened the tenancy profile with extended leases from CGU Insurance Limited and AGL Limited. Earlier this year CGU leased levels four and five at 601 Bourke Street, having already committed to levels one, two and three in 2011. The lease term was for five years at $506,052.50 per annum in a deal negotiated by Ben Ward from Knight Frank and Ed Knowles from Colliers.
The landlord also made significant recent upgrades, including a full renovation of the lift controls and refurbishment of the bathrooms on five levels.
CBRE agents Mark Coster and Mark Granter and Jones Lang LaSalle agents James Kaufman and Rob Anderson brokered this week's sale of the office block which has 7980 square metres of net lettable area and basement parking for 26 vehicles.
Built in 1975, the office block on a 901 square metre holding, was formerly known as Forestry House.
In 2001 Australian Growth Properties paid $10.8m to buy 601 Bourke Street when it was a vacant building.