This article is from the Australian Property Journal archive
MIRVAC is looking to take advantage of strong investors’ appetite for assets by putting the Como Centre at South Yarra on the market and it is expected to fetch upwards of $200 million.
This is the first major listing in Melbourne for 2016 and the asset will be marketed by Colliers International’s Nick Rathgeber and Leigh Melbourne, in conjunction with McVay Real Estate’s Sam McVay and Dan McVay.
The offering comes as South Yarra witnessed the $92 million sale earlier this week of the 17,600 sqm Vogue shopping plaza less than 300 metres away.
Como occupies a prime 2ha site with a total St frontage of more than 300 metres to Chapel St, Toorak Rd and River St.
The asset currently generates more than $14 million of net income from 25,000 sqm plus of office space, 6,600 sqm of retail space, a 113-room hotel and a 614-bay car park.
The office component alone is spread across four towers at 644 Chapel St, 650 Chapel St, 620 Chapel St and 299 Toorak Rd, which collectively represent over 60% of the asset’s net income.
The asset is highly recognisable in Melbourne as it is home to TV network Channel 10, which has long occupied the corner office tower at 620 Chapel St.
650 Chapel St has recently been completely repositioned and is now home to Clemenger and Mirvac is currently completing a capital expenditure program to the office space.
The retail hub is home to mix of boutique fashion, food, health and beauty, in addition to the long-standing Palace Cinemas. Mirvac has recently received development approval to enhance the offering.
The Como Hotel is a 113-room, 5-star hotel comprising two food and beverage offerings, conferencing and meeting facilities, gymnasium and swimming pool. The hotel is operated by Accor under a lease that expires in June 2021, subject to a further five-year option at Accor’s discretion.
Finally the complex also features a 614-bay car park, which is operated by Wilson Parking on a lease expiring on 31 August 2016.
Rathgeber said the scale and nature of the offering was seldom found in the Australian property market.
“The Como Centre is one of the best known properties in Melbourne and is very familiar to both the interstate and overseas visitors who frequent the hotel and high-quality retail offering,” he said. “We expect the scale of the real estate, the diversity of the income stream and the iconic nature of the asset will be of great appeal,” Rathgeber said.
McVay said rarely does an opportunity arise to acquire a landmark asset of this calibre that has genuine and immediate value-add opportunities.
“The Como, with its excellent tenant covenant and unrivalled location, represents this opportunity. We expect this property to be highly sought after, both domestically and internationally.” McVay said.
Australian Property Journal
