Colliers International fields outstanding interest from diverse group of buyers
363 King Street, currently occupied by Australian Receivables Limited, has been sold by Colliers International’s Daniel Wolman, Oliver Hay, Matt Stagg and David Sia to a private investor from Asia.
The property is situated on a 1,054sqm site near the corner of La Trobe Street and King Street overlooking Melbourne’s popular Flagstaff Gardens.
“The purchaser was looking to for a secure destination to invest in Melbourne, which they see as a safe haven for their money,” Mr Wolman said. “The purchaser identified the strength and growth that the Melbourne CBD, and the Flagstaff precinct in particular, represents and this property was ideally suited to their requirements.
“We fielded extremely strong interest throughout the campaign from investors, owner occupiers and developers. Interest was so high, in fact, that the property was taken off the market early due to the competitive nature of this record offer and strong terms.
“A property of such dominant stature with protected views and light corridors coupled with the capacity for repositioning into multiple uses is extremely difficult to come by in this market and undoubtedly contributed to the highly competitive nature of the campaign.”
Located on the boarder of West Melbourne and the Melbourne CBD grid, 363 King Street is set to directly benefit from a range of upcoming state infrastructure including the $250million Queen Victoria Market Redevelopment Project and the $11 billion Metro Rail Project.
Mr Wolman said the Flagstaff precinct was quickly emerging as one of Melbourne’s most diverse, with vibrant apartment living, student housing complexes, leading education institutions, world-class hospitals and healthcare facilities as well as countless infrastructure projects including the Melbourne Metro Rail and Queen Victoria Market Redevelopment.
“Recent activity in this northern CBD corridor has had a positive effect on both the development site and office markets,” he said. “This can be seen in recent transactions within the area including 81-89 Bouverie Street, Carlton which sold for a record land rate for the precinct of $23,752/m²* on a tight 1% yield and 611-617 King Street, a corner office building which sold for $5.9m reflecting a passing yield of 2.03%.
“The growth of Melbourne’s North and West pockets is driven by the locality, heightened demand for student housing and plot-ratio restrictions in the Melbourne CBD, causing the rise in interest from student accommodation groups and other add-value players with CBD fringe development strategies.
“We have recently seen many private education groups, both local and offshore come out of the wood-works with the goal of securing CBD and city fringe premises. 470 Bourke Street, which sold for well above $30million in April this year, is a prime example of education groups willing to compete with developers to secure space to occupy and operate as educational facilities.”