Hiap Hoe Ltd has agreed to sell its property located at 206 Bourke Street in Melbourne for A$116.3 million to ISPT Pty Ltd. The sale is expected to be completed by January 2016.

The freehold property is a mixed-use development with a total net lettable area of 128,237 sq ft, comprising a mix of retail and office space. Hiap Hoe has an approved planning permit to build a 142-room hotel above the fourth level of the existing development.

The total purchase consideration for the asset is A$116,280,000 before tax. Five per cent of this sum, amounting to A$5,814,000, has been paid upon signing. The balance 95% of the sum, or A$110,466,000, will be paid upon full settlement of the contract, which is scheduled to take place on Jan 21 next year.