Far East lands Melbourne deal
The Far East Consortium acquired a 68-level apartment project in Melbourne in a $90 million deal from investor, Besgate Group.
The project, at 640 Bourke Street was acquired in 2013 by Besgate from Australia Post with a development permit in place for a 42-level 560 apartment complex for $23.9m ($42,678 per apartment). Besgate subsequent re-designed the tower and obtained approval for a further 26 levels accommodating 813 apartments.
At $90m, the purchase price now represents $110,701 per apartment site and is the same rate Meriton paid last week for Besgate's other divestment at 170 King Street.
Far East started investing in Australia in 1994 and was initially heavily concentrated in Melbourne with projects including Regency Towers, Flinders Wharf Apartments, Royal Domain Plaza, Royal Domain Tower, Northbank Place, Upper West Side, The Fifth and West Side Place. More recently, their national expansion over recent years has seen its portfolio include Queens Wharf Brisbane, The Star Residences Gold Coast, The Towers Elizabeth Quay Perth, Perth Hub and The Star Residences Sydney.
The latest acquisition in Melbourne sets up the group for the next development phase for the Melbourne market.
The off-market deal was brokered by Colliers.