Hotel Grand Central enters deal to sell Melbourne property for A$80.8M

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Hotel Grand Central has entered a deal to sell the property at 300 Flinders Street in Melbourne, Australia, for A$80.8 million to a third party, the company said in a filing to SGX Monday. 

The property is a commercial office building, with a basement, ground level and an additional 19 storeys, the filing said. 

Hotel Grand Central purchased the property from The Victoria University with a seven-year leaseback deal for A$51.45 million, the filing said. The tenancy was extended and will expire in October, the filing said.

Currently, The Victoria University fully occupies the property and pays annual rent of A$5.36 million, plus outgoings, Hotel Grand Central said. 

Completion of the deal is contingent on the buyer receiving approval from the Foreign Investment Review Board of Australia, Hotel Grand Central said.

Hotel Grand Central said the sale would allow it to realize its investment before the sole tenancy matures, and it added the net proceeds would be placed into bank term deposits pending a decision on future investment opportunities.