Australian Red Cross has listed its Carlton asset for sale in a move tipped to attract significant developer and investor interest.
Located at 165 Bouverie Street and 155 Pelham Street, the landmark site encompasses a land area of 2,039sqm and provides a combined street frontage of more than 90m.
It also offers two highly functional office buildings with a net lettable area of more than 2,700sqm, plus substantial onsite car parking.
Australian Red Cross occupied the buildings, before recently relocating to North Melbourne.
CBRE’s Josh Rutman, Mark Wizel, Julian White and Lewis Tong will steer the international Expressions of Interest campaign in conjunction with Colliers International’s Guy Wells, Oliver Hay, Trent Hobart and Daniel Wolman. Matthew Berg from Partner has been appointed to manage the transaction on behalf of Australian Red Cross.
Mr White said buyer interest would be underpinned by the favourable outlook for Melbourne’s student accommodation and office markets and by the green shoots emerging in the residential sector.
“We are anticipating interest from a broad range of buyers groups given the flexibility of the asset and the current underlying market fundamentals,” Mr White said.
“The University of Melbourne and RMIT both have a large and growing proportion of international students – at 36% and 38% respectively – requiring nearby accommodation. Office vacancy rates are at historic lows, enhancing the income generating potential of the current improvements, while green shoots are emerging in the residential market, which should lead to heightened levels of development in the future.”
Mr Wells said the site’s location in the heart of Melbourne’s education precinct was expected to generate particularly strong interest in the property’s potential for student accommodation development.
“Given its proximity to both the University of Melbourne and RMIT University, the site is positioned to capitalise on the current activity in the student accommodation sector, with developers Scape and Cedar Pacific currently completing nearby projects,” Mr Wells said.
“The addition of the soon to be completed Parkville Train Station, only a couple of hundred metres away, will further enhance the connectivity and popularity of the location.”
Australian Red Cross CEO Judy Slatyer said; “The Carlton properties are in a high value and strategic location and selling them allows us to reinvest for the long-term, in support of our work. This move is part of a national property masterplan that releases value from several key properties and allows us to work in locations that best serve the people who use them, from clients and partners to staff and volunteers.”
165 Bouverie Street has a 1.5 star NABERS Energy Rating and 155 Pelham Street is exempt.
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