The Australian Financial Review - Tuesday 10 May, 2005.

Geelong' s Taj fetches $15m
Karina Barrymore

The notorious Geelong Tax Office building, once the headquarters of the failed Pyramid building society, has been sold in an off-market transaction for $l5 million.

The landmark property has been bought by an unlisted investment vehicle controlled by Australian Public Trustee on a yield of about 8 per cent.

The office building, often described as the Taj Mahal of Geelong because of its grand proportions, was built by Pyramid for about $25 million to be the new headquarters of the, then, booming institution.

However, the building society, which also included the Farrow group, never got to occupy the property before it collapsed in 1990, leaving debts of up to $1 billion.

The liquidator went on to sell the building after securing a long-term lease to the Tax Office and the City of Geelong.

Despite its extravagant development costs, the building sold in 1995 for just $10 million, bought by local businessman Philip George on a yield of 12 per cent.

According to selling agent DTZ Australia directors Andrew Stern and Russell Hannan, the latest sale indicates a capital gain of 50 per cent during the past 10 years.

The same two tenants still \ occupy the property.

The new owner. Australian Public Trustees, is a trustee company that holds public infrastructure and community service assets.

It recently paid $15 million for a new office building in Bendigo.

The Bendigo building, which is due to be completed this month. has been pre-leased to the Victorian government's Department of Human Services.