This article is from the Australian Property Journal archive
THE Victorian Liberal Party has put its state headquarters at 104 Exhibition Street in Melbourne’s CBD to the market, hoping the $30 million plus sale will boost its coffers ahead of November’s state election, but revelations of Opposition Leader Matthew Guy’s past as Planning Minister threaten to derail his tilt at a change of government.
Colliers International’s Daniel Wolman, Matt Stagg, Oliver Hay and David Sia are marketing the Centenary Hall building with an asking price of more than $30 million.
It is the first time the six-level, 2,550 sqm building has been put to the market since 1976, when the Liberal Party-associated Vapold Pty Ltd picked it up for $576,000.
Constructed in 1935, it has a striking art deco façade and period features, and has ground floor retail leased to Flight Centre, 7-Eleven and Subway, and a number of commercial tenants through the upper floors – including the Liberal Party occupying one floor.
The building is located in the city’s east end, opposite QIC Limited’s $1.8 billion redevelopment at 80 Collins Street and SX1 Tower.
“104 Exhibition Street is currently fully leased and offers excellent future rental growth potential given the prime east end location and strong Melbourne CBD office leasing market,” Wolman said. “The opportunity to secure a freestanding building in the east end of the CBD is extremely rare and will be of strong interest to international and domestic high net worth private investors and family offices.”
Stagg said the property’s flexible Capital City 1 Zoning enables a variety of value-add and development opportunities, including refurbishment, strata subdivision and construction of additional levels, while conversion to residential, hotel or hospitality use could also be explored.
Meanwhile, Guy and the Liberal Party are now having to deal with revelations that he ordered a taxpayer-funded $3.5 million settlement to avoid a court hearing related to his decision to rezone 24 hectares of farmland in Phillip Island’s Ventnor in 2011 when he was the Planning Minister.
Documents in an 80,000-page dossier compiled and tabled by the Andrews Government show Guy is quoted as saying in 2013 that “This may be winnable @ law but this is a political fight and it is unwinnable,” and “This can’t go to court. I shall not be in the job if it goes to [court]”.
The rezoning was made against the recommendation of the Bass Coast Council and resulted in a high-profile public outcry over the decision, famously featuring global popstar Miley Cyrus. Guy then repealed it, but this prompted the purchaser, Carley Nicholls, who bought the property because of the rezoning, to sue, alongside long-term landowner John Cadogan.
Nicholls’ property developer husband, Jim Hopkins, was a member of the Liberal Party on Phillip Island. Kennett Government Planning Minister, Rob Maclellan, was a family friend of Nicholls and Hopkins and it was revealed by Fairfax that he lobbied Guy for the rezoning on their behalf.
While legal advice augured well for the government’s case, Guy was concerned about the impact on his role in the government should he need to testify.
Labor has called on Guy to resign and pay back the settlement sum, which was well above the $250,000 suggested by government insurers. The total figure included $2.5 million to settle with Nicholls and Cadogan, plus the government covering legal costs for all parties.
Guy has responded and threatened to release documents relating to Labor’s term in office, including the $1 billion payout over the abandoned East West Link project.
Guy said he ordered the case to be settled to avoid a “lawyers’ picnic”.
“Proceeding out of court was the sensible way.
“… would have cost a lot more and I wasn’t prepared to pay more money for lawyers to go to court.” Guy said.
Australian Property Journal
