PrimeSpace Property Trust No.2
The PrimeSpace Property Trust No.2 was a wholesale unit trust established to purchase and reposition the heritage building in West Row, known as the Melbourne Building.
The Melbourne Building is a landmark of renaissance style architecture and is one of Canberra’s oldest and most preserved buildings. Built in 1927 to establish the Canberra CivicCentre, The Melbourne Building and its identical sister, the Sydney Building, form a prominent gateway into the Nation’s Capital. Having been among the first independently built shopping complexes, the Melbourne Building has an impressive history and continues to be an icon in Canberra’s landscape. The Melbourne Building offers a variety of ground floor retail tenancies such as restaurants, cafés, bars and pubs. The first floor is tenanted by Quest Canberra Serviced Apartments, which offers a range of 37 studio, one and two bedroom apartments, featuring fully equipped kitchens, laundry facilities, separate lounge and dining areas, and has a décor complementary to the heritage charm of the Melbourne Building.
Summary
- The Melbourne Building was extensively refurbished by prior owner.
- PrimeSpace purchased the property in 2006 and then successfully strata titled the property (Stage 1).
- A partial exit for investors was acheived in November 2007 following strata completion.
- Stage 2 was to hold the strata titled property and commence orderly sell down over time as appropriate.
- Remaining investors enjoyed regular income distributions until complete sale of final unit in December 2009.
- Timeframe: Stage 1 – 18 months (strata) & Stage 2 – 24 months (hold)
- Purchase: $18.5 million
- Sale Price: $23 million
- Return: 15% pa IRR
- Status: SOLD
