EWI Capital Acquires Prime Melbourne Office Tower as It Accelerates Shift Towards Recurring Income Assets

PETALING JAYA (May 7): EWI Capital Bhd has completed the acquisition of its first investment asset in Australia through its investee fund, marking a major milestone in the company’s strategic transformation from a traditional property developer into a real estate investment holding group focused on recurring income.

In a Bursa Malaysia filing, the company announced that TrustCapital Australian Office Fund No 3 — in which EWI Capital serves as the anchor investor with a committed capital of A$100 million (approximately RM276.5 million) — successfully completed the acquisition of 750 Collins Street in Melbourne for a net purchase price of A$381 million on May 6.

The prime office tower comprises approximately 41,000 sq m of net lettable area and is fully leased to Monash University under a long-term 15-year tenancy agreement expiring in 2035.

The tenant profile is considered highly secure, with Monash University carrying an Aa1 credit rating from Moody’s, reflecting strong financial standing and tenancy reliability.

In 2022, Monash consolidated several of its Melbourne CBD operations — previously spread across Bourke Street, Exhibition Street and Collins Street — into the repurposed 750 Collins Street campus, which now functions as the central hub for Monash College.

Strategic Shift Towards Stable Recurring Income

EWI Capital president and CEO Teow Leong Seng described the acquisition as an important first step in strengthening the company’s long-term investment strategy.

According to Teow, the combination of a prime Melbourne location, a long-term institutional tenant and exposure to the resilient education sector provides a strong foundation for stable recurring income and sustainable value creation.

The acquisition also reinforces EWI Capital’s broader shift towards quality income-producing assets in mature international markets.

Formerly known as Eco World International Bhd, the company was listed on Bursa Malaysia’s Main Market in 2017 and has traditionally focused on property development projects in the United Kingdom and Australia.

Its existing development portfolio reportedly carries a remaining gross development value (GDV) of approximately £4.6 billion in the UK and A$0.7 billion in Australia.

However, in 2025, the group expanded its strategic direction to include real estate investment as an additional core business pillar, targeting stronger recurring income streams and enhanced long-term shareholder returns.

Contrarian Investment in Melbourne’s Office Market

The acquisition comes at a time when Australia’s office market continues to experience elevated vacancy levels following post-pandemic market adjustments.

National office vacancy rates reportedly increased from 0.5% in 2020 to 14.8% in the first half of 2025, largely due to increased office supply and changing workplace dynamics.

Despite this, prime office rents in Melbourne have shown resilience, especially in core precincts where demand for quality assets remains comparatively stronger.

According to Knight Frank’s Australian Office Indicators Fourth Quarter 2025 Report, Australia’s office development pipeline is expected to moderate over the next five years as developers face:

• Higher construction costs
• Elevated financing costs
• Rising capitalisation rates

These conditions are expected to limit new supply while improving occupancy levels and supporting stronger rental growth throughout 2026.

In addition, Melbourne’s population growth and strong international student market are expected to sustain long-term demand for education-related properties — a key factor supporting the investment rationale behind 750 Collins Street.

Fund Targets A$1 Billion Portfolio

TrustCapital Australian Office Fund No 3 is structured as an eight-year fund with an option for a two-year extension.

The fund is targeting:

• Internal rates of return (IRR) above 10% annually
• Prime Australian office asset yields of approximately 6% to 8% annually
• Total equity fundraising of up to A$500 million
• Asset management portfolio growth of up to A$1 billion

The strategy focuses on acquiring three to four prime Grade A and Grade B+ office assets across major Australian cities including:

• Melbourne
• Sydney
• Canberra
• Brisbane
• Perth

The fund manager, TrustCapital Advisors Investment Management, previously delivered IRRs ranging between 11% and 24% from its earlier Australian Office Fund No 1 and No 2 upon divestment.

What I Learned from This Development

This acquisition highlights how Malaysian property companies are increasingly evolving beyond traditional development activities into long-term investment ownership models focused on stable recurring income.

Several important lessons stand out from EWI Capital’s strategy:

• Prime institutional tenants such as universities can provide long-term income stability even during uncertain office market conditions.
• Contrarian investment opportunities often emerge during periods of market weakness when valuations and acquisition conditions become more attractive.
• Mature international markets like Australia continue to attract Malaysian capital due to transparency, liquidity and stable legal frameworks.
• Education-related real estate is becoming an increasingly attractive asset class because of growing international student demand and urban population growth.
• Property developers are diversifying into investment holding structures to reduce reliance on cyclical development profits and create more predictable cash flow.

The acquisition of 750 Collins Street represents more than a single office purchase — it signals EWI Capital’s broader repositioning into a recurring-income-driven real estate platform with long-term exposure to high-quality international assets.