This article is from the Australian Property Journal archive
THE prestige Swanston House in Melbourne’s CBD has changed hands for the first time in nearly four decades, selling at auction for $18.02 million.
Swanston House at 163 Swanston Street went under the hammer in front of a crowd of more than 150 people, before going to a local investor for a competitive land rate exceeding $95,000/sqm.
Leon Ma, Daniel Wolman and Oliver Hay from Colliers, alongside Kristian Peatling and Warwick Bramich from Alexander Robertson, managed the sale on behalf of the Conos family.
“Despite current interest rate rises, we have witnessed a strong demand for quality commercial property across all asset classes in Melbourne. The recent sale of Swanston House demonstrates just that,” said Ma.
Throughout the campaign, more than 80 enquiries were garnered from both local and overseas investors, before going to auction with The Auction Company’s Paul Tzamalis.
Built in 1922 by renowned architect Nahum Barnet, Swanston House features dual frontage to both Swanston Street and Masons Lane, seeing more than 17,000 in daily foot traffic.
The seven-storey asset includes 1,508sqm of NLA and an additional newly refurbished basement and the potential for a rooftop terrace, making it suited to a multitude of uses including office, hospitality and retail.
Its prime location could also be a drawcard for high-quality tenants, as demonstrated by surrounding retailers including Myer, David Jones, H&M and Zara.
Sitting on one of the main thoroughfares of the Melbourne CBD, the tightly held Swanston Street has seen just four properties hit the market in the last decade.
Meanwhile, the nearby St. Collins Lane shopping centre is hitting the market for the third time in six years, ahead of a major redevelopment. With CBD retail assets hit hard throughout the pandemic as cities were left emptied of office workers and the base of day-to-day trade.
“Sold with vacant possession and a total net lettable area of 1.508sqm, Swanston House comes with endless value-add opportunities thanks to its great heritage and pristine location,” concluded Bramich.
