The Melbourne headquarters of Robert Christie’s national co-working business Christie Spaces is being brought to the market, providing a prime investment opportunity on one of Melbourne’s busiest corners.
The CBRE Melbourne Middle Markets team of Josh Rutman, Kiran Pillai, Mark Wizel and Lewis Tong has been appointed to market 454 Collins - a high-profile office and retail building located at the intersection of Collins and William Streets.
The 11-storey asset is being offered subject to a 10-year leaseback to Christie Spaces. It has been fully refurbished in line with the company’s revised co-working model which aims to compete with the likes of WeWork and The Hub. Interest is expected from a range of private investors and boutique investment groups, both locally and offshore.
“Given the significant investor appetite for Melbourne office assets and the building’s prime corner position, we expect the sale campaign to generate significant investor interest,” Mr Rutman said.
“Very few Collins Street transactions have occurred in the sub $40 million price range in recent years, with just three freehold assets changing hands since the start of 2016.”
CBRE’s Mr Pillai noted that the 10-year leaseback would be a key buyer draw card, providing long term investment security.
“While the Melbourne market is showing some of the strongest fundamentals we have seen since 2007, this provides an opportunity for investors to insulate themselves from any potential volatility in the market over the medium to longer term by having such a long-term lease in place,” Mr Pillai said.
The West End of the Melbourne CBD has undergone a transformation over the past decade, with some of the city’s largest corporates relocating to the precinct.
Major retailers and hoteliers have followed suit, the latest being the Mandarin Oriental which is set to be built at 600 Collins Street.
Other major developments in the precinct include Cbus Property’s Collins Arch mixed-use development, which has already attracted King & Wood Mallesons, HWL Ebsworth and Gadens as pre-committed tenants, as well as the city’s first W Hotel.
“Over $3 billion in office, retail and residential development is either planned or underway in Melbourne’s mid-town. It’s a rapidly changing landscape and investors are looking to get a piece of the action before this market fully matures,” Mr Pillai said.
Mr Pillai also noted that while the building was being sold subject to a long-term lease, the property's prime location, underlying fundamentals and long term, value-add potential future proofed the asset against any potential change in the occupancy profile.
“The property would suit a variety of long term options, including a strata sell-down or the development of additional floors, subject to the relevant planning approvals,” Mr Pillai said.
454 Collins Street is being offered for sale via an International Expressions of Interest campaign closing April 6, 2018.
For Australian/international news or global stories, follow us on Twitter: @cbreaustralia
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2017 revenue). The company has more than 80,000 employees (excluding affiliates), and serves real estate investors and occupiers through more than 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.