800 Collins Street listed for sale
An office building with ground floor retail in Melbourne’s Dockland has been listed.
The 800 Collins Street asset is a modern A-Grade building which is fully occupied and includes tenants such as retail giant Myer and Latitude Financial Services (formerly GE Money) who have entered into a 10-year lease.
Savills Investment Management (on behalf of one of their global mandates) and Australian Prime Property Fund Commercial, managed by Lendlease Investment Management, are collectively selling their 100% interest in the asset.
The property could fetch around $270 million, according to The Australian.
The building incorporates ground floor retail shops and 10 upper levels of office space with two levels of parking.
The marketing is being done by Savills Australia’s Ian Hetherington, Simon Fenn and Ben Azar along with JLL’s Langton McHarg and Paul Kempton. The building is for sale via an expressions of interest campaign ending November 1.
Built in 2010, the building comprises 28,619 sqm of office space, 873.4 sqm of retail space and total capacity equalling 29,492.6 sqm with expansive floorplates of circa 2,900sqm.
The complex serves as the National Support Office for Myers.
The A-Grade building has a 5 star NABERS rating.
It is connected directly to the Melbourne CBD, Southern Cross and Flinders Street rail stations.
“The Melbourne office market is rated by JLL in the top two best performing office destinations in the world making Melbourne office assets very attractive in comparison to other office markets,” said JLL’s Langton McHarg.
“Over the last two years Melbourne has continued to increase its relevance on the global investment stage and is forecast to become Australia’s largest city by 2030. It is experiencing a phase of extraordinary positivity due to its strong economy, infrastructure and culture that is extending across all of its property markets.”
According to Ian Hetherington of Savills, the Docklands precinct has emerged as an important commercial location.
“800 Collins Street will attract the focus of investors globally and we are anticipating very strong interest in this asset, particularly because of its prominent Collins Street location and desirable building features” he said.
Vacancy rates are about 1 per cent at present and the area is popular with tenants in the banking, finance and insurance sectors due to the larger floor plates and ‘campus style’ buildings, he added.
An upgrade of the lobby and end of trip facilities is currently underway.
According to the Property Council of Australia (PCA) as at July, 2017, the total amount of office stock recorded in the Melbourne CBD was circa 4.5 million square metres. The Docklands precinct has some 19.8 per cent of the total CBD stock. Since its inception in 2004, about 900,000 square metres of office space has been developed in the precinct, which is now home to several of Australia’s leading corporates.