A brand new, high-profile investment grade office building has changed hands following a competitive campaign that navigated two lockdowns without losing momentum.
Colliers’ Daniel Wolman, Oliver Hay and Rachael Clohesy were the exclusive agents who marketed 11 Wilson Street, South Yarra. Agents were inundated with unprecedented demand from both local and offshore investors looking to capitalise on a high quality fully leased investments in one of the country’s best precincts.
“During the initial five-week marketing campaign, we were interrupted by a two-week Covid-related lockdown, yet saw no need to extend the campaign,” Mr Wolman said. “The building is so well designed that coupled with it being fully occupied to quality tenants, the market interest remained extremely strong. We even experienced another two-week lockdown during in the five-week due diligence period – some might say the building is COVID-proof".
“In the last decade, we have not seen buildings of this quality hit the market in Melbourne’s city fringe. This truly is one of the best and most prized assets that we will see in 2021. We received very genuine interest from buyers all over Australia and well as Asia, Europe and America.”
Set amongst the highly sought-after South Yarra commercial precinct, 11 Wilson Street is serviced by first-class amenity and an abundance of Melbourne’s most exclusive hospitality and retail operators. The building is a stone’s throw away from the iconic $1.4billion Jam Factory redevelopment and cosmopolitan Chapel Street precinct.
The developer and vendor, Bill McNee, CEO of Vicland, occupies the top floor of his newly built office building and has been a resident in South Yarra for many years.
“I live in the area and have had several different offices in the area for many years,” Mr McNee said. South Yarra has always been missing something special. A top quality, premium-style bulding like you would find on Collins Street.
“The suburb needed something different, something modern, fun and high-end. It is one of Melbourne’s most affluent city fringe commercial destiantions with exceptional amentiy and connectivity. I saw a gap in the market and I acted swiftly when Colliers sold me the site a few years earlier.”
The building itself expands over an impressive nine-levels providing in excess of 6,300sqm of high quality commercial accommodation. The tower features a stunning glass façade boasting abundant natural light, private terraces to the upper levels, end-of-trip facilities and basement car parking.
“The building is perfectly positioned to benefit from uninterrupted views across the Melbourne CBD and Port Phillip Bay,” Mr Wolman said. “There are no city fringe assets that compare.”
The property is 100% leased to a range of A-grade commercial tenants providing a secure long term WALE of 7 years. 11 Wilson Street is home to well-known corporate tenants including The Commons, Revolution 360, Ipsos and recently secured Impressive Digital.
“A building of this quality and price point attracts a large and diverse groups of buyers,” Mr Hay said. “From high-networth individuals and family offices, to corporate funds and major institutions. The calls, emails and offers came from all over the world with the end purchaser coming from Europe."
“To be able to offer a fully leased investment in a brand new high quality building with a long WALE removes so much risk from the market. This is what investors are looking for, especially in a market with so much uncertainty based around the COVID-19 pandemic.”
The buyer is Real I.S Australia, part of the Real I.S Group. One of Germany’s leading providers of property investors for private and institutional investors. The Group manages around $8billion worth of real estate globally. Since 2005, Real IS have invested approx $2billion in Australian Commercial Real Estate and currently manage approx $1.4billion across eight direct assets here.
Other notable Vicland developments that are currently underway include the large scale premium grade office building which is already under construction in the heart of Toorak Village. With several lease deals already in play including a high-end Coles Local supermarket, a well-renowned restauranteur as well as popular gym will be sitting at the base of the new 10,000sqm premium office space.
“Mr McNee understands the City of Stonnington better than almost anyone,” Mr Wolman said. “He had a vision for South Yarra and the need for a quality style boutique office building, hence 11 Wilson".
“Now he has a vision for what is needed in Melbourne’s most affluent suburb. Bringing quality, culture and life into Toorak Village will reinvigorate the area and I have no doubt that this development will bring about arguably Melbourne’s best metro office building at 489-505 Toorak Road, Toorak. The end value will likely be in the vicinity of a quarter of a billion dollars.”