A knock-out unconditional bid of more than $50 million has resulted in the early sale of a prized commercial investment in the Melbourne CBD.
Colliers International’s John Marasco and Matt Stagg have sold 520 Collins Street a week prior to the close of the Expressions of Interest campaign following a strong, unconditional offer from an undisclosed purchaser (subject to confidentiality agreement).
The sale represented a capital value of around $6,000 per square metre and an initial yield of circa 6.7%.
Mr Marasco said the property received strong international and local interest from a wide range of buyer groups, including high net worth private investors, family offices and fund managers.
“520 Collins Street provided the opportunity to secure a prized commercial investment on the most tightly held street in the Melbourne CBD,” Mr Marasco said.
“The majority of Collins Street office investments comprise high-rise towers owned by major institutional investors. 520 Collins Street offered a truly rare opportunity for a discerning buyer to secure a prized freehold Collins Street office for their portfolio."
520 Collins Street was a prominent 17-level office building with a net lettable area of 8,554sqm including ground floor retail and car parking, on a substantial 836sqm site. Office levels have a typical floor plate of 577sqm and can accommodate whole or part floor tenants.
Mr Stagg said the prime Collins Street location directly opposite The Rialto and Intercontinental Hotel was a major factor in the strong interest generated throughout the marketing campaign.
“Collins Street is renowned as Australia’s most prestigious office address and is also home to luxury retail brands, international hotels and high-rise residential developments. 520 Collins Street is well located at the heart of this busy and sought after precinct,” he said.
“It also has a large land area and flexible Capital City 1 zoning which enables future development outcomes to be considered (STCA). This could include the construction of additional levels or enhancing the ground floor retail. Residential or hotel development could also be explored.
“There are a number of major commercial, retail, residential and hotel developments planned or underway between Queen Street and Spencer Street in the Melbourne CBD.
“These developments include 447 Collins Street (Cbus), a major refurbishment of the Rialto (Equiset & StMartins), and 555 Collins Street (Fragrance Group). These projects will be valued at several billion dollars upon completion, making this precinct the new centre of Collins Street and gateway to Docklands.”