Wealthy entrepreneurs continue to look for deals in the commercial property sector, with Solomon Lew and Daniel Besen sealing major property deals in Melbourne in the last few days.
Besen, the son of veteran property billionaire Marc Besen, has emerged with a 50% stake in Melbourne office tower 1 Spring Street, which was formerly known as Shell House.
According to a report in the Australian Financial Review, Besen paid $67 million for the stake on a yield of 7.5%.
The stake was formerly owned by Record Realty, which is now is receivership.
Besen is best known as one of Australia’s canniest private equity investors and his firm has previously bought stakes in businesses including Seek, Boost Juice, MIMCO, Strike Bowling and fashion label Sass & Bide.
Besen’s family is also well know for their investments in the property and rag trading sectors. Marc Besen owns stakes in Melbourne’s Highpoint Shopping Centre and other retail outlets, while Daniel Besen’s older sister Naomi Milgrom is the owner of the Sussan fashion empire.
While one entrepreneur has been buying in this week, another has been selling out.
Solomon Lew is more than $30 million richer after selling a development site in Melbourne’s CBD to Setia International, a division of Malaysian property developer SP Setia BHD Group.
The 4,300 square metre site is currently a car park but is likely to be redeveloped, potentially into a residential project.
Lew paid just $810,000 for the site almost 30 years ago, according to The Age.
James was the editor and publisher of SmartCompany and LeadingCompany for five years. He is now the Australian Financial Review‘s companies & markets editor, and a former BRW editor.
Comments