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PETALING JAYA (May 7): EWI Capital Bhd's investee fund has completed the acquisition of its first asset — a prime Melbourne office tower — marking a significant milestone in the Malaysian developer-turned-investment-holding company's strategic pivot towards recurring income-generating real estate.
In its Bursa announcement yesterday, it said that TrustCapital Australian Office Fund No 3, in which EWI Capital is the anchor investor with a committed capital of A$100 million (approximately RM276.5 million), had completed the acquisition of 750 Collins Street, Melbourne for a net purchase price of A$381 million on May 6.
The property has a net lettable area of approximately 41,000 sq m and is fully tenanted by Monash University under a long-term 15-year lease expiring in 2035.
Monash University holds an Aa1 credit rating from Moody's, reflecting the strength of the tenancy covenant.
In 2022, the university consolidated its Melbourne CBD operations — previously spread across three locations at Bourke Street, Exhibition Street and Collins Street — into the repurposed campus at 750 Collins Street, which now serves as the central hub for Monash College.
Commenting on the acquisition, EWI Capital president and CEO Datuk Teow Leong Seng said the property's prime Melbourne location, long-term educational tenant and exposure to the education sector provide a strong foundation for stable recurring income and long-term value creation.
"The completion of 750 Collins Street represents a significant first step for the Fund and reinforces our strategic direction towards quality, income-producing assets in mature markets," he said.
Contrarian bet on Melbourne offices
The acquisition comes against a backdrop of elevated vacancy rates in Australia's office market, which rose from 0.5% in 2020 to 14.8% in the first half of 2025 due to increased supply.
However, prime office rental growth in Melbourne has seen a marked uplift, driven by stronger rents in core precincts.
Looking ahead, the national office development pipeline is expected to moderate over the next five years as developers face high construction costs, elevated funding costs and higher capitalisation rates.
Combined with continued positive absorption, these conditions are anticipated to support a decline in national average vacancy rates and stronger rental growth throughout 2026, according to Knight Frank's Australian Office Indicators Fourth Quarter 2025 Report.
Melbourne's population growth and large international student base are also expected to sustain long-term demand for education-related facilities — a key demand driver for the 750 Collins Street asset.
Pivot to investment holding
EWI Capital, formerly known as Eco World International Bhd, listed on Bursa Malaysia's Main Market in April 2017 and has traditionally been a property developer with projects in the United Kingdom and Australia, carrying a combined remaining gross development value of £4.6 billion (RM24.47 billion) and A$0.7 billion respectively.
In 2025, the company broadened its strategic focus to include real estate investment as an additional core pillar, targeting recurring income and enhanced long-term shareholder value. Its commitment to TrustCapital Australian Office Fund No 3 — an eight-year fund with an option to extend by two years — reflects that shift.
The fund targets an internal rate of return (IRR) of above 10% per annum, with prime Australian office assets currently yielding approximately 6% to 8% annually.
The fund aims to raise up to A$500 million in equity and ultimately manage assets worth up to A$1 billion, investing in three to four prime Grade A and Grade B+ office assets across Sydney, Melbourne, Canberra, Brisbane and Perth.
The fund manager, TrustCapital Advisors Investment Management, achieved IRRs of 11% to 24% upon divestment of its earlier Australian Office Fund No 1 and No 2.
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