Japan's NTTUD buys Melbourne office building for estimated $47 mil.
SYDNEY, NNA - Japan’s NTT Urban Development Corporation (NTTUD) has bought an office building ranked highly for sustainability in Melbourne as part of its overseas business expansion.
NTTUD acquired a 100 percent freehold equity interest in the seven-story building at “200 Victoria Street Melbourne” through its Australian subsidiary, UD Australia Pty Ltd., the company said in a statement on Thursday.
Although it did not disclose transaction figures, it is estimated to be worth AU$76 million ($47 million), according to The Australian Financial Review.
Built in 1971, the property with a leasable area of 7,912 square meters is located at the northern edge of the commercial business district (CBD) which is poised to develop as an innovation hub.
"The northern precinct of the Melbourne CBD is designated as a special innovation zone called the Melbourne Innovation District, which is planned to grow as an innovative hub for medical and educational institutions and relative start-up businesses, and we expect the building should attract tenants within those sectors," said NTTUD in its statement.
The building, which had a major renovation in 2009, is one of the highest ranked sustainable buildings in Melbourne. It enjoys a 6 Star Green Star NABERS rating based on a national system which measures the operational efficiency of a building with regards to energy and water consumption, waste management and indoor environment quality.
On its business expansion in Australia, the company said, "In accordance with our investment strategy, UD Australia Pty Ltd will continue to expand its pipeline over the medium to long term to further strengthen its business portfolio."
The Japanese group has already undertaken four housing projects in the country and also acquired a stake in an office building in Canberra in 2019.
NTTUD, a property arm of Japan's telecom giant Nippon Telegraph and Telephone Corp., has also gained footholds in Britain and the United States.