This article is from the Australian Property Journal archive
VICTORIAN taxpayers have bought the Seven Network’s Melbourne headquarters for $100 million, Treasurer Tim Pallas has revealed, after not including details of the transaction in the state budget.
The government’s rationale to buy the office building and studio was not included in the State Budget announced earlier this week.
The Seven Network reported that the state government authority, Development Victoria, has acquired the Channel 7 Melbourne Broadcast Centre located at 160 Harbour Esplanade for around $100 million.
Speaking at a function the treasurer asked, “Am I breaking any confidence here?”
The Channel 7 office and studio was sold by the National Roads and Motorists’ Association (NRMA), which has driven away with almost $50 million in capital gain after acquiring the asset in July 2010 from Trafalgar Corporate for $54.2 million on a yield of 7.64%.
Opposition Matthew Guy reportedly told the Seven Network that he did not believe it was a good deal.
Purpose built for the network in 2001, the five storeys building comprises a total net lettable area of 7,980 sqm plus basement parking for 144 spaces, set on a 6,701 sqm site. It was sold with an eight-year lease to the Seven Network.
The Seven Network sale follows a string of transactions in Docklands, including Morgan Stanley Real Estate buying a 50% stake in 699 Bourke for $102 million last month, First State Super and APPF paying $550 million for the Two Melbourne Quarter office development in March, and Canada’s Manulife acquiring 800 Collins St for $290 million.
The Treasurer also revealed that the government will gift a parcel of land at Docklands to the Australian Football League (AFL).
The site at Docklands Drive Docklands will be developed and become the league’s new headquarter. The property will revert to public hands in year 2057.
In addition, the government will provide $225 million of taxpayer funds for the redevelopment of Etihad Stadium.
The AFL bought the stadium from the James Fielding Infrastructure Fund in October 2016 for $200 million, nine years ahead of the stadium returning back to its hands.
Had the AFL not acquired the leasehold, it would have had to wait until March 2025.
Completed in 2000 at a cost of $460 million, the stadium’s leasehold was sold by billionaire Kerry Stokes’ Seven Network to the James Fielding Infrastructure Fund in 2006 for $330 million.
Prior to the AFL buying the stadium, there was speculation at least three Chinese developers were interested in the asset and were prepared to offer up to $1.3 billion.
Australian Property Journal
