This article is from the Australian Property Journal archive
AN office building at 520 Collins St in Melbourne's CBD has sold off the market for more than $50 million, a week prior to the close of the expressions of interest campaign.
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The sale represented a capital value of around $6,000 per sqm and an initial yield of circa 6.7%. The 17-level office building comprises a net lettable area of 8,554 sqm including ground floor retail and car parking, on a 836 sqm site. The office floor plate is 577 sqm and can accommodate whole or part floor tenants.
Colliers International’s John Marasco and Matt Stagg said the property changed hands a week prior to the close of EOI, after receiving a strong, unconditional offer from an undisclosed purchaser.
Marasco said the property provided an opportunity to secure a prized investment on the most tightly held street in the city.
“The majority of Collins St office investments comprise high rise towers owned by major institutional investors. 520 Collins St offered a truly rare opportunity for a discerning buyer to secure a prized freehold Collins St office for their portfolio,” he added.
Stagg said the site also has a large land area and flexible Capital City 1 zoning which enables future redevelopment opportunities, including residential or hotel.
Australian Property Journal
