Mirvac to sell one of Australia’s most recognised mixed use complexes
Located in Melbourne’s most affluent and active precinct, one of Australia’s finest mixed-use complexes, the Como Centre, is about to hit the market through Colliers International’s Nick Rathgeber and Leigh Melbourne in conjunction with McVay Real Estate’s Sam McVay and Dan McVay.
Currently owned by Mirvac, the agents expect the landmark property to attract interest upwards of $200million.
Positioned on the high profile corner of Toorak Road and Chapel Street in popular South Yarra, ‘Como’ is surrounded by an abundance of residential development, along with an array of restaurants, retail stores and entertainment venues.
Como occupies a prime 2ha site with a collective street frontage of more than 300m to Chapel Street, Toorak Road and River Street.
The South Yarra trophy asset currently generates more than $14million of net income from its over 25,000sqm of office space, 6,600sqm of retail space, a 113-room hotel and a 614-bay carpark.
The office component alone is spread across four towers (644 Chapel Street, 650 Chapel Street, 620 Chapel Street and 299 Toorak Road), which collectively represent more than 60% of the asset’s net income.
Como provides some of the highest quality office accommodation in Melbourne’s city fringe, with space suitable for both corporate and private tenants.. The top levels of the main tower at 644 Chapel Street enjoy some of the best panoramic views of Melbourne outside the CBD.
Several high profile tenants lease the office space, including Channel 10, which has long occupied the corner office tower at 620 Chapel Street where numerous well known TV programs, including The Project, are filmed. 650 Chapel Street has recently been completely repositioned and is now home to Clemenger, who moved to the building in December 2013. Mirvac is currently completing a capital expenditure program to the office space including extensive accommodation upgrades and plant replacement.
The Como retail centre is a well-established South Yarra retail destination, providing an excellent mix of boutique fashion, food, health and beauty, in addition to the long-standing Palace Cinemas. Its location on Melbourne’s iconic retail hotspot, Chapel Street, and expansive street frontage ensures it remains at the forefront of Melbourne’s retail scene.
Mirvac has recently received Development Approval for the centre’s enhancement, which will enable a complete rejuvenation and repositioning of the asset. The redevelopment will take advantage of the centre’s outstanding demographics that boast population growth rates double the Melbourne average and per capita spend rates levels well in excess of Australian averages.
The Como Hotel is a 113-room, 5 star hotel comprising two food and beverage offerings, conferencing and meeting facilities, gymnasium and swimming pool. The hotel is operated by Accor, one of the world’s leading hotel operators, under a lease that expires in June 2021 (subject to a further five year option at Accor’s election).
The hotel continues to operate strongly and provides an excellent driver for Como’s retail, commercial and car parking components.
The last key piece of the Como is its 614-bay car park, which is operated by Wilson Parking on a lease expiring on 31 August 2016. South Yarra has minimal car parking facilities of scale, and with the high level of residential development underway in the immediate precinct, this car park forms an important aspect of the combined asset. The car park services all aspects of the property, with direct leases to the commercial tenants and hourly rates for the retail and hotel.
Mr Rathgeber said the scale and nature of the offering was seldom found in the Australian property market.
“The Como Centre is one of the best known properties in Melbourne and is very familiar to both the interstate and overseas visitors who frequent the hotel and high-quality retail offering,” he said. “We expect the scale of the real estate, the diversity of the income stream and the iconic nature of the asset will be of great appeal."
Sam McVay said: “Rarely does an opportunity arise to acquire a landmark asset of this calibre that has genuine and immediate value-add opportunities. The Como, with its excellent tenant covenant and unrivalled location, represents this opportunity. We expect this property to be highly sought after, both domestically and internationally.”