This article is from the Australian Property Journal archive
THE four-storey building at 362 Little Collins Street in Melbourne’s CBD has sold to joint venture partners Brookfield and ISPT, who are developing the $800 million office tower next door at 405 Bourke Street, which will become NAB’s new headquarters.
Teska Carson’s Michael Ludksi sold the property for $14.05 million, at a 2.8% yield, on behalf of Edmond Roy Brown. Brown, part of the Darwin-based horse training family, paid Patricia Ilhan $9.5 million for the asset just three years ago.
It was refurbished ahead of the 2015 deal, and has a net lettable area of 950 sqm with ground floor retail and three office levels above, on a 312 sqm site.
The building is fully leased to Flight Centre and Brookfield Multiplex, among others, and returns $396,000 per annum net. It is located near Elizabeth Street and at the rear of the 405 Bourke Street development.
Ludski said the the campaign attracted more than 80 enquiries from local, interstate and offshore buyer.
He said the price reflected the limited CBD opportunities for investment in the sub-$15 million market, while the potential to add additional floors to the building had also been important in the property’s appeal to a wider range of buyers.
“Melbourne’s strong office market with its sub-5% vacancy rate and growing tenant demand, the blue chip tenancy profile, and the property’s exceptional potential for development and capital growth in arguably Melbourne’s most famous and popular laneway, were also important attributes.”
Construction has just started at 405 Bourke Street, which will rise 39 levels and 167 metres high, and will have 66,000 sqm of office space.
ISPT took a 50% stake in building at the end of last year from Canadian group Brookfield, at the same time that NAB confirmed a pre-commitment of 43,000 sqm within the development.
Another major lender is also making a move within the CBD. Westpac is consolidating its 1,000 sqm 142 Elizabeth Street branch with its existing premises at nearby 303 Collins Street. It is also consolidating its 530 Collins Street premises to 114 William Street.
The 362 Little Flinders Street sale follows the $5.961 million sale of the four-level retail and office building at 181-183 King Street, known as Aries House, at a sharp 2.22% yield.
Five bidders competed for the asset, which is leased to a number of tenants and returns $147,095 per annum net.
Australian Property Journal
