KUALA LUMPUR (May 6): A fund backed by EWI Capital Bhd (KL:EWICAP) has completed its first major property acquisition in Melbourne, Australia, for A$381 million (about RM1.09 billion).
TrustCapital Australian Office Fund No 3 acquired the commercial asset at 750 Collins Street, Melbourne, on Wednesday, said EWI Capital, formerly known as Eco World International Bhd, in a statement.
The property offers about 41,000 sq m of net lettable area and is currently tenanted by Monash University — one of Australia’s largest universities — under a 15-year lease expiring in 2035. The university carries an Aa1 credit rating from Moody’s.
The deal follows EWI Capital’s announcement in October last year that its wholly owned unit, EWI Investment Holdings Ltd, would anchor the fund with a committed capital of A$100 million.
EWI Capital’s president and CEO Datuk Teow Leong Seng said the acquisition marks a key milestone for the fund and aligns with the group’s strategy to invest in quality, income-generating assets in mature markets.
He said the asset’s prime location, long-term tenancy and exposure to the education sector support stable recurring income and long-term value creation.
“As such, the acquisition will contribute positively to the fund’s performance and support EWI Capital’s objective, as the anchor investor, of delivering sustainable returns to our shareholders."
EWI Capital noted that the national office vacancy rate of Australia had risen to a high of 14.8% in the first half of 2025, compared with only 0.5% in 2020, due to an increase of supply.
However, it also noted that prime office rental growth in Melbourne has seen a marked uplift, driven mainly by stronger rents in core precincts. EWI Capital said that firmer rental growth is expected, supported by lower vacancy rates.
“Together with the expected continuation of positive absorption, these conditions are anticipated to support a decline in national average vacancy rates and stronger rental growth throughout 2026.
“Melbourne’s continued population growth and large international student base are also expected to support long-term demand for education-related facilities,” EWI Capital added.
Shares of EWI Capital closed down half a sen or 2.70% at 18 sen on Wednesday, valuing the group at RM420.63 million.