This article is from the Australian Property Journal archive
THE iconic Maria George Building in the east end of Melbourne’s Flinders Lane has sold with a short settlement and no due diligence.
Built in 1911, the five-level office and retail asset at 179-181 Flinders Lane, offers rear access off the famous Hosier Lane with significant potential for growth due to its placement in the strong performing precinct of the CBD.
Oliver Hay, Daniel Wolman and Leon Ma from Cushman & Wakefield managed the sale via an expressions of interest campaign, fielding more than 120 enquiries.
They declined to comment on the price.
However industry sources suggest that the building changed hands for $13.91 million. With a net lettable area of 1,308sqm, the property sold by for an NLA rate of 10,703/sqm on a yield of sub 1%. At the time of listing, the property was expected to go for round $15 million.
The site was sold with a holding Income and future value-add and repositioning capability, with a planning permit in place for a luxury boutique hotel.
The Maria George building last changed hands in October 2017, selling to an overseas investor for what was then a record $11.4 million, at a rate of $9,500/sqm.
Prior to this, the heritage listed asset sold to private investors in 2012 for $5.6 million.
Due to its placement in the CBD, the building boasts strong foot traffic and public transport access and is also located directly opposite the international headquarters of the ASX-listed BHP Billiton.
Amidst an imbalance in supply and demand in the Melbourne CBD market, this week 440 Elizabeth Street was listed with expectations in the range of $80-85 million.
With larger sales in the CBD slow to get started this year, taking five months of 2024 for a major transaction to occur with the sale of a 760-bay car park at 28 La Trobe Street, located within the East-End of the CBD occupied by Secure Parking, marking the largest single CBD transaction so far this year.
