Colliers Matt Stagg, Daniel Wolman and Oliver Hay have been exclusively appointed to offer for sale the Victoria University City Campus at 300 Flinders Street, Melbourne by Expressions of Interest closing 12 noon Wednesday 12 May 2021. The quoting price is more than $90 million (Excluding GST).
Victoria University has occupied the prominent B grade mixed-use building since approximately 1993 and leases the basement, ground and levels 9 to 18 with a total net lettable area of 14,093sqm.
The current net passing income is $5,179,394 per annum. The lease is due to expire 30 October 2022 at which time Victoria University will relocate to their new $400 million City West Campus designed by Jackson Architecture and developed by ISPT.
300 Flinders Street is located directly opposite the west entrance of Melbourne’s famous Flinders Street Station.
This is a rapidly developing CBD precinct with pending 2025 completion of the new $9billion Melbourne Metro project. Lendlease has Over Station Development rights to construct approximately 20,000sqm of mixed-use retail and commercial space above the new Town Hall Station on the corner of Flinders Street and Swanston Street.
Mr Stagg said publicity surrounding Melbourne Metro was beginning to attract a wave of international investment along Flinders Street and Flinders Lane.
“Flinders Street Station is the busiest train station in the Melbourne CBD,” he said. “When the Metro Tunnel is completed, this location opposite Flinders Street Station will have the highest concentration of pedestrian foot traffic in the Melbourne CBD and potentially that of any capital city in Australia.
“300 Flinders Street is well positioned to capitalise on projected increased activity with an extensive 40 metre street frontage to Flinders Street and valuable interconnectivity via an undercover retail arcade throughfare providing pedestrian access through to Mill Place, Flinders Lane and Collins Street Financial Precinct.”
Recent sales in the precinct have included Riverside Plaza (452 Flinders Street) to German real estate giant Deka Immobilien in December 2020 for circa $440million and Invicta House at 226 Flinders Lane to Swiss Fund Manager Fidinam in March 2021 for circa $40million.
“The pending lease expiry and holding income provides sophisticated and strategic investors the opportunity to reposition and add value to this dynamic investment opportunity,” Mr Wolman said.
“The upper commercial levels provide flexible floor plates ranging in size from 1,200sqm to 2,200sqm with abundant natural light from four sides and panoramic views of the City and Southbank skyline.
“ Some floors feature interconnecting stairs between levels, outdoor balconies and terraces providing a unique point of difference to attract tenants. The building is a prominent fixture on the Melbourne CBD skyline with illuminated signage rights that may be leveraged to attract a new anchor tenant to the building.”