This article is from the Australian Property Journal archive
A “blank canvas” CBD tower near Melbourne University and RMIT is set to stir interest from a range of buyers when it hits the market.
The 19-level, 10,900sqm vacant building at 50 Franklin St has potential for conversion into student accommodation, hotel or residential use, or could continue to be utilised as a destination office building, having been tenanted by Qantas for a number of years before ASX-listed Salmat most recently.
Colliers International’s Oliver Hay, Daniel Wolman, Matt Stagg and Trent Hobart, in conjunction with Charles Vraca of Melcorp, are marketing the 2,213sqm site on behalf of a consortium of private investor via expressions of interest campaign.
“This is a very rare opportunity in the CBD, particularly in a prime location such as this one on the doorstep of Melbourne’s education precinct and at the epicentre of high-rise residential development,” Hay said. “This is a sizeable blank canvas for a purchaser – it is ideal for investment, conversion or development – in an unprecedented opportunity in the Melbourne CBD market this year.”
Wolman said the education sector is one of the Melbourne CBD’s largest industries and occupiers of real estate, with 50 Franklin St is situated in the heart of the Melbourne CBD education precinct and surrounded by some of Australia’s most respected universities including Melbourne University, RMIT University and Victoria University.
He said he building has sought after 9B certification, enabling it to be leased to education tenants.
“Education groups are also moving to owner-occupy campuses in order to secure scarce Melbourne CBD and city fringe sites, with recent examples including Haileybury College and the Melbourne Institute of Technology,”
Hay said the property was also well placed to benefit from strata subdivision and conversion to other uses, subject to the relevant approvals.
“Strata office accommodation is a very attractive alternative to leasing given the current record low interest rate environment,” he said. “Many small-to-medium business owners are buying strata office floors as part of their self-managed superannuation funds.”
Wolman said 50 Franklin St was well-placed to capitalise on this demand given it was already strata subdivided as 18 office floors with basement parking registered on separate titles.
“It offers flexible and efficient floor plates with excellent natural light from two sides,” he said.
Australian Property Journal
