A 12-storey office building located at 406 Collins Street, Melbourne, has been sold to a private investor, making it the first freestanding building on the prestigious street to be sold this year.
The 3,861 sqm* NLA building, which has recently undergone significant refurbishments, attracted substantial attention from local and offshore investors, aligning with Collins Street's reputation for commanding the strongest rents and lowest vacancies across Melbourne’s CBD.
The asset was sold with a weighted average lease expiry (WALE) of 1.33 years by income, with a diverse range of tenants who boastfully call Collins Street home. The contemporary office accommodation has average floor plates ranging from 339 sqm to 364 sqm.
The sale was jointly managed on behalf of the vendor by Daniel Wolman, Oliver Hay and Leon Ma of Cushman & Wakefield and Joel Wald of MMJ. The agents all declined to comment on the sale price however it is understood that the asking price during the marketing campaign was circa $30 million.
The trophy asset received enormous demand resulting in over 150 enquiries, 30 inspections and 11 offers from investors locally, interstate and offshore.
Daniel Wolman, Cushman & Wakefield’s International Director & Co-Head Investment Sales, VIC, said the sale of 406 Collins Street shows the enduring strength and vitality of Melbourne's commercial office market, especially within the iconic Collins Street.
“The asset was hotly contested as investors vied for a place in one of Melbourne’s premier business locations. It defied market challenges with hundreds of enquiries and multiple offers, with the transaction standing as a testament to long-term investor confidence.”
He continued “Assets like 406 Collins Street are rarely traded, with this coming to market for the first time since [year]. Its price point also attracted investors seeking to capitalise on both the eminent location and value-add and repositioning opportunities.”
Leon Ma, Cushman & Wakefield’s Head of Asia Capital Services, added, “The sale was buoyed by its strategic location, being in close proximity to Bank Place, Little Collins Street, Bourke Street Mall, and the Collins Street luxury retail precinct.”
Joel Wald from MMJ said, “This asset offered an exceptional investment opportunity sharply recognised by the market. The vigorous competition and sale continue to elevate Collins Street’s reputation as the pinnacle of Australian business addresses.
*Approximate
