Larry Kestelman sells his Melbourne headquarters for about $60 million

Larry Kestelman has sold his Queens Road, Melbourne headquarters for around $60 million.

It has been bought by a Chinese investor.

The 10 Queens Road was sold on a yield of around 5%.

Colliers were seeking tenants for vacant office space in March.

Kestelman bought the Queens Road tower in 2013 for $21.35 million on a 10.8% yield.

Number 10 Queens Road, at the north-eastern edge of Albert Park Lake, was bought after the entrepreneur was cashed up after selling his interest in Dodo to M2Communications for a reported $150 million.

He revamped the 8700 square metre building, which sits on a 2300 square metre site.

LK Property will retain its space in the building.

The 19-level building overlooks Albert Park Lake.

Kestelman is meanwhile planning to develop a $140 million, 10-storey office building in Fitzroy North.

“Not everyone wants to work in the city,” Kestelman recently told The Australian.

“My office is on Queens Road (near South Yarra). It’s a great spot. It allows me the benefit of being close to the city but not having to drive into the city every day.”

The 622 Nicholson Street site, currently the Moonlight Receptions function centre, is 3 kilometres from the city centre.

The developer considered apartments but decided on an office project since the Melbourne CBD office market is tight, with vacancy at just 4.6%, according to recent Property Council figures.

The project marks a departure for the developer, whose LK Property Group has largely focused on apartments, other than transforming its own head office.

The group’s flagship project is the $500 million Capitol Grand tower in South Yarra, where close to 80% of the stock below level 32 is sold.

The premium upper-level apartments are 35-40% sold.