Colliers, CBRE expect strong contest for two top quality Melbourne buildings
Two high quality, A-Grade Melbourne office investments leased to government tenants and situated on a large city land holding are set to hit the market in a rare investment opportunity.
Colliers’ John Marasco, Anna Cavar, Oliver Hay and Adam Woodward, in conjunction with Mark Coster, Kiran Pillai, Scott McGlone and Stuart McCann of CBRE, have been appointed to sell 1010 La Trobe Street, Melbourne and the adjacent Innovation Building.
The properties, which are for sale by International Expressions of Interest closing September 1st are situated within Melbourne’s City Harbour precinct, between the CBD and Melbourne’s waterfront.
“On offer is a unique opportunity to acquire a 100% interest in these two buildings which have large, functional floorplates, spectacular water views and unparalleled connectivity and amenity,” Mr Marasco said. “They are situated on an exceptionally large underlying land area of 6,811sqm in an established government precinct with an enviable tenancy profile.
“There is also potential to add value through tenant management and a curated capital expenditure program, offering the purchasers the opportunity to capture the rewards of investing in one of the CBD’s last growth areas.”
1010 La Trobe Street and the Innovation Building are wholly contained in two separate allotments, while a separate car parking component is located in the podium of 1000 La Trobe Street. All three components will be sold together, in-one-line.
1010 La Trobe Street is a nine-level office building incorporating a ground floor foyer, retail tenancy and a secure garage/storage area, together with eight upper levels of office accommodation.
The vendor has commenced planning for a refurbishment and repositioning of 1010 La Trobe Street, along with upgrading of the outdoor landscaping located between the two office buildings.
The five-level Innovation Building incorporates a ground floor foyer and secure server rooms, together with four upper levels of office accommodation. The car parking component for both buildings comprises 163 bays.
The precinct is framed by major road arterials including Citylink and is only moments from CBD-bound public transport routes. It also neighbours Marvel Stadium, Southern Cross Station, District Docklands and the Queen Victoria Market.
Mr Coster said the location offers every convenience of the city, with the added benefit of waterside views, all situated in one of Melbourne’s largest urban renewal corridors.
“1010 La Trobe Street and the Innovation Building will benefit from the immense government investment already committed to the adjacent Marvel Stadium precinct,” he said. “A new masterplan for the City Harbour precinct has been developed incorporating a Central Park, which will be an active centre, with large trees and paved paths connecting Harbour Esplanade and Digital Drive.
“The Victorian State Government has committed $225 million to transform Marvel Stadium into one of the best sports and entertainment destinations in the world, and has offered to the market the opportunity to acquire a long-term lease over Docklands Studios Melbourne and development land fronting Docklands Drive with the vision to create a world-class and thriving media precinct.
“This is in addition to the investment in the West Gate Tunnel Project, which will create a vital direct city access from the western suburbs and an alternative to the Westgate Bridge.”
Agents expect the exceptional offering to attract significant interest, from both local and offshore investors.
“Australia has remained a safe haven for investment, with the local economy rebounding strongly following the impacts of Covid-19, and Melbourne remains a sought after destination for investment by all major groups,” Mr Marasco said.
“Melbourne is a gateway city to the Asia Pacific, home to more than 350 hotels, a world class biomedical precinct on the doorstep of the CBD, world-renowned universities and a highly educated workforce.
“Our city offers a high performing office market with a diverse tenant base, strong historic population growth and record Government investment in infrastructure. Melbourne is poised for an accelerated recovery upon opening of international borders.”