$80m expectations as Bendigo Bank‘s Melbourne HQ hits market

The Melbourne HQ of ASX-listed Bendigo and Adelaide Bank has been listed for sale, with expectations it could sell for more than $80 million.

The 2005 built Docklands office block at 120 Harbour Esplanade been listed by the Singapore-based owners Wharf Street Investments. 

Its 8,300 sqm of net lettable area is 100% leased to Bendigo and Adelaide Bank, one of Australia's largest retail banks, until 2025.

CBRE’s Kiran Pillai, Mark Coster and Neva Courts and Colliers International’s Trent Preece, Matt Stagg and Anna Cavar are set to market the property through an international expressions of Interest campaign.  

CBRE’s Kiran Pillai said the listing provides one of the first major tests of Melbourne’s office investment market in 2019. 

“The Docklands precinct is one of the strongest performing office markets in the country. Limited future supply of new buildings, significant investment into transport infrastructure and surrounding amenity have heightened demand with vacancy rates tipped to drop below 0.7%,” Pillai said. 

“With rents at the property coming off a low base, the property offers investors the opportunity to secure a high-quality building with an excellent covenant plus strong prospects for short and medium-term rental growth.”

Colliers International’s Trent Preece said he expects the offering to generate a strong level of interest from both offshore and domestic investors, given the quality of the asset and lack of recent major investment opportunities in Melbourne,

"The property is strategically positioned to capitalise on the State Government’s recent $225 million commitment to upgrade the adjoining Marvel Stadium, which will transform the precinct into a truly world class sports and entertainment hub.”