RBA sells Melbourne HQ for $160 million

RBA sells Melbourne HQ for $160 million
RBA sells Melbourne HQ for $160 million

The Reserve Bank of Australia has sold its Collins Street, Melbourne HQ for a reported $160 million.

The Australian Financial Review have suggested the buyer its Dexus, the country's largest listed landlord.

In April the RBA quietly called for tenders to sell the 15 storey tower in which the Bank occupied only 10 percent of. They had the 300 sqm space on the top floor of 60 Collins Street.

The other 12,000 sqm of lettable space was fully tenanted.

The building contains a high security strongroom vault used for storing gold bullion and exchanging bank notes which has now been transferred to a newly built facility the bank’s note printing works in Craigieburn on the Hume Freeway on Melbourne’s outskirts.

The RBA were reported to have expected to find a buyer in the region of $100 million, but saw Dexus an opportunity to also secure the 11 storey office tower next door for around $70 million.

The adjacent building at 52 Collins is owned by Marks Henderson Funds Management. 

Dexus proposes to consolidate the two sites at 52 and 60 Collins Street across circa 2,000 square metres and in the medium term activate a prime grade office development to create a total of circa 35,000 square metres of space, subject to planning approval.

Darren Steinberg, Dexus CEO said the acquisitions provide it with a presence in the tightly held ‘Paris end’ of Collins Street in the Melbourne CBD.

"They also present us with a unique opportunity to undertake an office development creating long term value for investors in the next supply cycle, in a prime location where we receive significant enquiry from our customer base.”

60 Collins Street is a 13,817 square metre B-grade office building, located on a 1,357 square metre site on the prime corner of Collins and Exhibition Streets in the Eastern Core of the Melbourne CBD.

The office space is 100% occupied with a weighted average lease expiry on settlement of 2.6 years.

Settlement is expected to occur by end of October 2018.

52 Collins Street is a 3,454 square metre B-grade office building, located on a 587 square metre site adjoining 60 Collins Street.

The property is 100% occupied with an expected weighted average lease expiry on settlement of 3.5 years.

 

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Melbourne CBD

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