Commonwealth Life has finally exited the Melbourne property market by just managing to break even on a Port Melbourne office building it purchased in the mid-1990s
A private investor is understood to have purchased the two-storey, 850 Lorimer Street office building, which had been occupied by Kraft Foods as a tenant for 10 years.
The sale price is believed to be around $12 million which is almost identical to the $11.75 million Commonwealth Life paid in 1995. Kraft exited the building about two years ago, relocating to nearby Todd Street.
Engineering company GKN Engage occupy the upper floor of the building, but the ground level is vacant.
It’s the second major Melbourne sale of a Commonwealth Life building this year.
In February, Colonial First State, the bank property arm, sold an office building at 290 Burwood Road to Melbourne’s Bennelong Group for $25.75 million.
Commonwealth Life bought that building in 1995 for $18 million.
The Commonwealth Bank is in the process of winding up the Commonwealth Life Fund, with all Commonwealth Life business to be transferred to Colonial Mutual Life Assurance Limited.
