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.
See: Roxy-Pacific to acquire Melbourne property for $33.7 mil
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.
See: Roxy-Pacific acquires Dunearn Court for $36.3 mil
“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.
See: Roxy Pacific to acquire Melbourne commercial site for $76 mil through Australian JV
“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.
