Australian publicly listed, and leading real estate group, Mirvac, have recently secured a commercial office building in Melbourne’s CBD for $122 million. The building is currently home to a branch of the Australian Federal Police (AFP) and was purchased from developer Sterling Global.
Through an off-market sale conducted by Knight Frank's Paul Henley and Stephen Kelly, 383 La Trobe Street was marked hot property thanks not to its tenants, but due to its potential for redevelopment. The AFP have separate plans to relocate.
Sterling Global acquired development approval for a 70-storey apartment tower designed by French architect Jean Nouvel, two years ago.
Mirvac have plans for redevelopment as well, but see better scope for office use. They have set their intentions in developing a new A-grade office tower spanning over 40,000 square metres. The site is a short walk to Flagstaff train station and Melbourne’s legal precinct.
Mirvac’s Head of Office & Industrial, Campbell Hanan, said, “The acquisition of 383 La Trobe Street presents us with a rare opportunity to secure a significant development asset in a well-located part of Melbourne’s CBD, while providing the Group with secure income over the medium term.
“We continue to see strong market fundamentals in Melbourne, as well as limited future supply options for tenants beyond the current development cycle. This acquisition allows us to grow our presence in this key gateway city, while adding to our current $3.1 billion commercial development pipeline.”
Sterling Global purchased the property three years ago for $70.7 million.
"383 La Trobe Street was an important key strategic investment for Sterling Global and its sale exceeds Sterling Global's return objectives," chief executive Neil Li said.