Flurry of domestic and international interest in Flinders Street office drawcard
prominent corner office building in Melbourne’s CBD has been listed for sale, following a series of off-market approaches by interested parties.
12 Sep 2019
342-348 Flinders Street, the current 5,201sqm Melbourne home of China Southern Airlines, will be exclusively marketed by CBRE’s Melbourne Middle Markets team of Josh Rutman, Lewis Tong and Mark Wizel.
Mr Rutman said the campaign coincided with limited office investment opportunities in the Melbourne CBD, despite positive sentiment towards the sector’s future growth prospects, and was set to attract a range of buyers looking to invest in the booming office sector.
“Only three properties have come to market in the $40 million to $100 million price range this year, whereas six assets in this price bracket were sold during the same time-period in 2018,” Mr Rutman commented.
“Given the significant investor appetite for Melbourne office assets and the building’s prime corner position, we expect the sale campaign to generate considerable investor interest.”
Mr Wizel added that interest was expected from private families, large institutions and boutique investment groups, both locally and offshore.
Situated immediately behind 333 Collins Street and 367 Collins Street, the building is directly opposite the Flinders Street Train Station and banana vaults, which have been slated by the state government for major redevelopment – sparking major activation to the surrounding precinct.
The 11-level building sits on the high exposure corner of the increasingly popular Bond Street, which is home to several well-known restaurants including Shane Delia’s award-winning basement venue Maha.
The building benefits from sweeping views of the Yarra River and Southbank, as well as ample signage opportunities for future occupants – even the lower levels have access to natural light and views.
With well-proportioned 461sqm floor plates, ideal for the current tenant market, the building is placed to benefit from a repositioning program, which could include improvements to the foyer and major retail activations – capturing commuter and surrounding office foot traffic.
Mr Tong noted that lack of investment stock on the market and the strength of the Melbourne office sector would be key buyer draw cards.
“The Melbourne office market is showing some of the strongest fundamentals since 2007, this provides an opportunity for investors to hold or add value and enhance a building’s current improvements – alternatively, investors could explore the option of a full site redevelopment,” Mr Tong said.
“We’ve seen both vacant and fully leased offerings sell for new pricing benchmarks, and we anticipate that these institutional transactions will set a very strong foundation for investors seeking a more boutique offering in the CBD.”For Australian/international news or global stories, follow us on Twitter: @cbreaustralia
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CBRE Group, Inc. (NYSE:CBRE), 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 2018 revenue). The company has more than 90,000 employees (excluding affiliates) and serves real estate investors and occupiers through more than 480 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.
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About CBRE Group, Inc.
CBRE Group, Inc. (NYSE: CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2021 revenue). The company has more than 105,000 employees (excluding Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of 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 https://www.cbre.com.