| Hakim Hayat |
A SINGAPOREAN-listed company controlled by Prince Abdul Qawi is completing a AUD$23.6 million deal for the acquisition of 301 Flinders Lane, a city office owned by Victoria University in Melbourne, Australia, the Sydney Morning Herald reported yesterday.
Prince Abdul Qawi, recently welcomed on board KLW Holdings Limited as Non-Executive Chairman, is the second largest substantial shareholder of the group since the subscription of its placement shares in June 2014, a media release from the group said, adding that with wealth of experience and business networks, the group is looking forward to further expand the business internationally.
“KLW Group is ready for the next phase of growth and I am confident that we can work together to scale new heights,” Prince Abdul Qawi said.
The media release added that the seven-storey prime freehold property within Melbourne Central Business District (CBD) is currently 100 per cent leased to a blue chip tenant Victoria University, with its lease expiring on October 30, 2020.
The leading Australian university made a handsome profit purchasing 301 Flinders Lane for AUD$4.8 million in 1998, an average 10.5 per cent return per annum over 16 years and put the property on the market with itself as a tenant on a six-year leaseback from settlement and annual rental of AUD$1.26 million, reported the Sydney Morning Herald.
With a land area of approximately 895 square metres with three street frontages sitting in Melbourne’s prime Central Business District, it is expected to provide an average rental yield of approximately 5.8% per annum for KLW Group throughout the lease.
The property is currently zoned ‘Capital City Zone 1’ and can potentially be developed into high density residential, commercial, retail and/or hotel uses and the bustling location represents the cultural heart and most vibrant destination in Melbourne’s CBD, complimented by local landmarks including the iconic Flinders Street Station and Federation Square, just minutes’ walk away.
Prince Abdul Qawi said, “This quality asset will provide immediate cash flow and returns for the group as a mid-term investment with great potential for capital appreciation while having the potential opportunity for future re-development. Lately, the influx of off-shore property investments into the ‘World’s Most Liveable City,’ Melbourne, has given us a good chance to enter this vibrant market that has the fastest population growth in Australia. The group will continue to source for quality investment opportunities.”
Meanwhile, the University’s Facilities Director, Gray Carter, said the money would be reinvested into education.
KLW Holdings Limited was incorporated in Singapore on June 15, 1995 and was converted into a public limited company in August 1998. Their businesses include door manufacturing, residential projects management and property leasing.