Spring Street Melbourne office site for possible residential redevelopment

Selling agents expect between $45 to $50 million for a 15 level office tower at 85 Spring Street in Melbourne’s so-called ‘Paris-end’.

Jones Lang LaSalle agent Paul Burns said the mid-80s Esanda building overlooking Treasury Gardens and the Parliament precinct would also suit residential apartments.

"It’s a ripping site for either,’’ he said of the building which was refurbished in 1998 and abuts the Parliament city-loop entrance.

It has been listed through Burns along with Leigh Melbourne of Colliers International.

The building last sold to private investment company Kador Group for about $47 million in 2011 when sold by AMP Capital Investors.

AMP paid the ANZ $30.03 million for the building seven years earlier.

Melbourne-based Kador credits itself with an efficient energy management focus, incorporating environmentally sustainable initiatives into the operation of its properties.

Short-term tenants of the building are the ANZ. The land area is 1241 square metres and the present building’s area is 10,435 square metres of quality office space. It has a 2.5 star Nabers energy rating.

"This is a commercially significant site which the buyer could refurbish, extend or redevelop into a major office in this premium location, or it could be converted to residential with the street plates extended to the street front,’’ Burns said.

He said architects Bates Smart had preliminary drawings which the buyer could access prior to commissioning the firm to further develop the building into a major high density apartment tower.

‘’There’s only a limited amount of residential product in the area – just a handful of other possible similar offerings’’ in this part of Spring Street between Collins and Little Collins streets.

Expressions of interest close on August 14.

In 1973 it was reportedly offered for sale with an adjoining block and a permit for a 23-storey tower.