This article is from the Australian Property Journal archive
WITHIN days of suffering a state election defeat, the Victoria Liberal Party has offloaded its Melbourne headquarters for $37.1 million to a luxury retailer.
The 2,550 sqm art deco building at 104 Exhibition Street in the CBD’s east end was built in 1935 and acquired by Liberal Party vehicle Vapold Pty Ltd in 1976 for $576,000. The party occupies level three and will be vacating later next year after 30 years in the space.
Tenants also include Flight Centre, 7-Eleven and Subway on the ground floor, and QIC Group, GSA, Multiplex and Tolarno Galleries above.
Colliers International’s Daniel Wolman, Matt Stagg and Oliver Hay negotiated the sale after receiving more than 110 enquiries and 10 bids.
Centenary Hall, as the building is also known, was listed with expectations of around $30 million after the Party had considered selling it for a number of years. Party president Michael Kroger had squared off with the Cormack Foundation, the Party’s biggest donor, in a long-running court battle.
The new owner of Centenary Hall was represented by King Independent Property Advisers and will use the 1935-built, six-level tower for their own headquarters. They will be set up just metres from the “Paris End” of Collins Street, which features high-end brands including Gucci, Bottega Veneta, Ralph Lauren, Prada, Louis Vuitton, MontBlanc and R.M. Williams.
“The demand for this asset shows us the true strength in the Melbourne property market with aggressive offers coming from local private investors, offshore investors and listed institutions,” Wolman said.
Stagg said several offers were received at a sharp return of circa 3%, given its high profile ground floor tenants, and location on one of Melbourne’s most blue chip corner locations.
“The growth potential in the East End of the CBD is forecast to continue, with vacancy rates at 1.4% and the new $1.8 billion development being constructed by QIDC directly across the road.”
QIC’s $800 million mixed-use project at 80 Collins Street will comprise a 39-storey, 43,000 sqm premium grade commercial tower that will be home to Macquarie’s Melbourne offices.
Australian Property Journal
