Malaysian Snares South Melbourne Office

A Malaysian investor snatched up a quality office in South Melbourne, coughing up as much as $14 million. It is the first time that the Malaysian investor buys a property in Australia.

CB Richard Ellis is the team that handled the transaction and led by Justin Clarkson and Mark Wizel. According to CBRE, 11 Dorcas Street was sold for about $14 million and the purchase was arranged for a group of private investors in Melbourne.

11 Dorcas Street is a five-level building and has been leased by Dimension Data, an IT company. The modern property also has 24 car parks. The building is also near to the Royal Botanic Gardens in St. Kilda Road.

So far, the Malaysian investor that bought the property is keeping a low profile although sources said the company would launch a marketing campaign soon. Sources also added that the investor has been eyeing a Melbourne property for quite some time now.

The sale of the Dorcas property is a sign that more Asians are investing in Australian shores. It also adds to the list of commercial properties that Malaysians, Chinese or Singaporean investors bought.

According to Wizel, Asian investors spent as much as $680 million for Melbourne properties in the last 2 1/2 years. He added that demand for properties remains strong and that it is natural for Asian investors to buy in Australia due to its geographical proximity.