Hong Kong private equity and real estate company PAG is again looking to snap up a Melbourne office tower at a time when many rival companies are steering clear of the city. The company is circling the Flinders Gate complex that adjoins Melbourne's renowned Adelphi Hotel, with listed property group DEXUS (ASX:DXS) looking to sell it around the $260 million mark after redeveloping the office complex five years ago. The Asia-based manager has previously bought while Melbourne's office market is at a low point, last year picking up a tower at 367 Collins Street from listed group Mirvac for about $340 million.
The Flinders Gate office complex comprises two boutique buildings and a multi-deck carpark. It could be slotted into a core mandate managed by the offshore group. Dexus redeveloped the tower after winning builder John Holland to anchor the Flinders Street complex on a site opposite Federation Square.
It also houses tenants including Netwealth, Cox Architecture and developer Time & Place. But private players are buying. Notably, property tycoon Harry Stamoulis, whose family fortune was originally struck in the Gold Medal soft drink empire, is buying again, with his company in due diligence on 357 Collins Street that a Frasers-run trust is selling for about $200 million.
Dexus declined to comment.
