Keo Group net $13.7 million in Savills Melbourne sale
Melbourne based private developer the Keo Group has sold a seven level office and retail building in Melbourne’s CBD to a local investor for around $13.7 million on a 6.76% yield in a sale brokered by Savills Australia.
It was one of 20 CBD buildings Savills have sold since March 2014, for a total of more than $250 million
The developer, Mark Keo undertook a refurbishment of the building in 2010 and added an additional level on the rooftop of the 1912 building, known as the Melbourne Steamship Company building.
It is one of a few remaining examples of the Edwardian Baroque commercial style.
The building comprises 564 square metres of retail space over three - basement, ground and mezzanine levels plus five floors of office totalling 1,224 square metres.
The 1788 square metre building was sold 98% leased to 11 tenants, with a fully leased net income of $926,117 per annum.
The building occupies a 361 square metre site zoned Capital City 1.
Savills’ Divisional Director, Nick Peden, who brokered the deal with head of city sales and investments, Clinton Baxter, said the marketing campaign for the 27-31 King Street property generated more than 100 recorded enquiries.
Baxter said the rate per square metre of building area of $7,656 was a very strong result.