Far East Consortium moves on property of Australian tycoon

JUST days after being named as having been involved in a property deal criticised in the John Lees Report into Tomson Pacific-World Trade Centre Group affairs, Far East Consortium International and its directors have announced the purchase of five buildings in Australia from well-known Melbourne real estate tycoon Irvin Rockman.

Hong Kong-listed Far East Consortium has agreed to pay a total of A$68.5 million (about HK$383.6 million) to directly and indirectly acquire seven prime commercial buildings held by trusts substantially owned and controlled by Melbourne's flamboyant former mayor.

Among the haul are two prestigious office blocks in St Kilda Road, central Melbourne - with a combined annual rental income of more than $3.46 million - and which are being bought for $16 million.

Far East Consortium is also buying a seven-storey office block in Lonsdale Street, Melbourne, a two-storey office building in Wells Street, South Melbourne, and a large mixed retail commercial complex known as Dolphin Arcade in Surfers Paradise, Queensland.

The three properties will cost Far East Consortium a total of $52.2 million, and are expected to bring in a combined annual rental income of more than $5.6 million.

Far East's Consortium's interest in the properties will entitle it to an 80 per cent share of the respective net profits generated by the buildings, and a similar net share from any subsequent sales.