This article is from the Australian Property Journal archive
ABOUT $70 million is expected for a retail, commercial and residential building on Melbourne’s Collins Street that was once held by the late former Prime Minister Bob Hawke, and which is strategically located between multiple entrances of one of the city’s future Metro train stations.
233-239 Collins Street is a strata-titled retail and commercial podium forming the base of “The Collins”, a mixed-use retail, commercial and residential building. It is the first time the property has been offered for sale since approximately 1997, when a syndicate involving Hawke sold the property for $15.5 million – about four years after paying $7.25 million.
The Age newspaper was headquartered at 233 Collins Street from 1879 for almost a century, and structural supports for printing presses still remain in the basement.
Now, the property, perched at the corner of Manchester Lane, is located between multiple entrances to the new Melbourne Town Hall Train Station that is scheduled for completion 2025 as part of the $11 billion Metro Tunnel project.
The property has a total net lettable area of 2,658 sqm over basement, ground, mezzanine, and level one, with 72 metres of dual retail street frontage. Its seven healthcare and retail tenants include OPSM’s Collins Street flagship store, and optometrist, dentist and medical clinic that have traded through the pandemic.
Net income for the current financial year is about $2.5 million.
Matt Stagg, Anthony Kirwan, Daniel Wolman, Oliver Hay and Leon Ma of Colliers have been appointed to sell the asset, offered for sale by expressions of interest closing 1st December.
Stagg anticipates domestic and international purchasers seeking a stable long-term investment with strong income and capital growth potential to show interest.
Retail tenancies in this precinct in this block include Montblanc, Balenciaga, Omega, Westpac, Bupa, Brunettis, Burberry, Tiffany & Co, HSBC, and ANZ.
“Pedestrian traffic is forecast to dramatically increase upon completion of the new Town Hall Train Station which will drive retail rental growth along Collins Street and Manchester Lane,” Kirwan said.
Singapore-listed retailer The Hour Glass bought the Balenciaga flagship store at 181 Collins Street in the middle of the year for about $35 million, on a yield of 4%, following its $68 million purchase late last year of the Louis Vuitton building at 139 Collins Street.
Just a block away, Sydney pub tsar Justin Hemmes bought Tomasetti House at 277-279 Flinders Lane for about $40 million, for what will be his Merivale Group’s first hotel venue, part of a string of Flinders Lane listings and deals this year.
Last month HThree City Australia bought 446 Collins Street for nearly $73 million.
