Eclectic heritage CBD corner sells for $14 million
A landmark heritage office building in Collins Street, Melbourne, has sold for about $14 million.
Agent Knight Frank had been confident it would set a benchmark price for 2011, in predicting $13.5 million-plus for the former New Zealand Loan and Mercantile Agency building prior to the sale.
It last sold in early 2003 for $6.94 million.
Built in 1909-10, the six-level retail and office building is on the Victorian Heritage Register.
The four upper office levels in the red brick and freestone building are vacant, with the Knight Frank marketing suggesting its easy conversion into a boutique hotel.
It was designed by Oakden and Ballantyne and built by Swanson Brothers, with its corner tower and metal-clad cupula accentuating the building's prominent corner siting on Collins and King streets.
Heritage Victoria attributes the building’s significance to its unusual and eclectic style, which was symbolic of a transitional time in Victorian architecture.
"The use of the Free or Edwardian Baroque styles in commercial buildings was unusual in Melbourne, and this building is now a rare example," says Heritage Victoria.
Knight Frank agents Langton McHarg and Marcus Quinn say it has a net lettable area of 3510 square metres and is on a site of 856 square metres.
Mr McHarg said the office space was ideal for refurbishment, with the new owner possibly occupying these floors.
Its 1,284-square-metre retail space is leased to Officeworks and d-spa dental.
The building could be retained as an investment, subdivided into strata suites or even converted to residential or a boutique hotel.
"Opportunities to purchase office buildings with significant vacancies in the CBD are virtually unheard of," he said.
The New Zealand Loan & Mercantile Agency Ltd was incorporated in England in 1865 and again after its financial collapse in 1894. Its main purpose was to provide investment and loan of money in New Zealand, and it extended its business to Australia in 1874. In 1961 the company merged with Dalgety & Co Ltd.
