AMP Capital buys back heritage-listed Collins Street address

AMP Capital has bought back the corner building it developed in 1931 to house its Melbourne operations.

The 425 Collins Street building was acquired for $39 million from the Indonesian-based Halim family.

The sale reflects a passing yield of 5.07% and a building rate of $7,250 per square metre. 

Negotiations for the 10-level office and retail building were handled by CBRE’s Kiran Pillai, Mark Wizel and Josh Rutman.

The property has been acquired by AMP’s Wholesale Australian Property Fund, which recently exchanged on the Stud Park Shopping centre in Rowville for $154 million.

The 425 Collins Street campaign had generated interest from Chinese and Singaporean hoteliers looking at a future conversion of the asset.

“Over $3 billion worth of office, retail and residential development is either planned or underway in Melbourne’s mid-town and Cbus’s proposed $1 billion redevelopment of 447 Collins Street is directly opposite", said Josh Rutman.

Designed by Bates, Smart and McCutcheon, the heritage-listed 425 Collins Street has a lettable area of 5,350 square metre.