Larry Kestelman Net Worth | Review of Financial Information Larry Kestelman, a member of the Rich List, has sold the Queens Road building in Melbourne to a Chinese investor for around $60 million, nearly tripling its value in five years.
The purchaser is believed to be one of the underbidders on Dexus’s Flinders Street car park, which Dexus ultimately sold to GPT for $90 million in April.
The deal for 10 Queens Rd, the headquarters of Mr Kestelman’s real estate company LK Property, was struck at a yield of approximately 5%.
Mr Kestelman – who is capitalising on the success of his National Basketball League by developing the $700 million Capitol Grand luxury high-rise tower in South Yarra – purchased the Queens Road tower in 2013 for $21.35 million on a 10.8% yield.
He has since renovated the 8700 square metre property, which sits on a 2300 square metre plot. LK Property will retain a stake in the building through a sale-and-leaseback arrangement.
It is understood that the transaction was completed before CBRE could formally market the asset.
The 19-story structure overlooks Albert Park Lake and is a short walk from the Royal Botanic Gardens.
Along with the landmark Capitol Grand in South Yarra – whose construction is being financed by Goldman Sachs – Mr Kestelman’s property development company is pursuing an office development in North Fitzroy, a hotel in South Yarra, and another project in Brighton.