To recap, the freehold building known as Melbourne House occupies a total site area of 937 sqm at 260 Little Bourke Street, with a current net lettable area (NLA) of 4,504 sqm.
It is due to be acquired by Roxy-Pacific’s indirect wholly-owned subsidiary, Roxy-Pacific Melbourne House, for A$33 million ($33.7 million), after which the group intends to redevelop the property into a mixed-use development comprising a hotel and retail units.
In a Thursday report, analyst Eli Lee says Roxy-Pacific is now deemed as well positioned to benefit from a turnaround in the domestic property market, given its landbank of 271,000 of gross floor area (GFA) including the group’s recent acquisition of Dunearn Court.
“We like that the group continues to expand successfully in Australia. It had earlier taken a 45% stake in a JV that is acquiring a Melbourne office building for A$74.1 million ($76 million). The freehold building at 312 St Kilda Rd in Southbank sits on a 1.9k sqm site with net lettable area of about 9.8k sqm, and is minutes from Melbourne's CBD,” recalls Lee.
“In Singapore, we see Roxy to be well positioned to benefit from a turnaround in the domestic property market. The group has a landbank that can potentially generate over 400 homes in seven sites,” he notes.
As at 2.02pm, shares in Roxy-Pacific are trading at 54 cents.
