Commercial sales surge in Melbourne CBD

Local and offshore buyers continue to circle the Melbourne CBD with three freestanding office buildings changing hands in quick succession in a flurry of activity.

After only 18 days on market, Colliers’ Melbourne City Sales team has sold a fully leased, freehold, three-storey building at 62 Little La Trobe Street for $6.55million to a local private Chinese investor.

The campaign, led by Colliers’ Leon Ma, Oliver Hay, Anthony Kirwan and Daniel Wolman, generated a high level of early interest with 15 inspections conducted within two weeks of launching.

“We have experienced a notable increase in enquiry from both local and offshore capital on premium CBD offerings,” Mr Ma, Colliers’ Head of Asia Markets in Melbourne, said.

The property at 62 Little La Trobe Street boasted a brand-new ground floor hospitality fitout and commercial kitchen on Level 1, with plans for a rooftop bar. Leased to NOX Café, a day and night café, restaurant and bar, the property returns a strong net income of $275,666p.a.* + GST + Outgoings, on a new 5+5 year lease.

Just a block away, Colliers has also handled the sale of 41-45 A’Beckett Street after a marathon auction which saw an 80-plus crowd and 111 bids. The property sold to another locally-based Asian investor for $9,355,000, achieving a strong land rate of $33,410/sqm – well above the vendor’s reserve.

“The asset presented ultimate flexibility – a three storey freehold with permit approval for a nine-storey mixed-use building – and attracted strong interest from investors, land bankers, and developers alike,” Mr Hay said. “It offered a perfect blend of features underpinned by strong fundamentals which fuelled investor demand in this pocket of the CBD.”

Mr Hay said 41-45 A’Beckett Street was positioned in an ideal location surrounded by major developments and infrastructure.

“The northern corridor of the Melbourne CBD is rapidly evolving to capitalise on the high foot traffic servicing the 24-hour Elizabeth and Swanston Street precinct, as well as its proximity to the new RMIT University campus facilitating 91,000 students,” he said. “The area is also set to benefit from the continued growth of Melbourne’s nearby Biomedical and University precincts, as well as the $250million Queen Victoria Market redevelopment and new CBD North Metro Train Station at its doorstep.”

In the same week, Colliers’ Daniel Wolman, Oliver Hay, Matt Stagg and Leon Ma also sold 152 Little Lonsdale Street unconditionally for $12,888,000. Transacted in conjunction with Allard Shelton’s Joseph Walton, Christian Hatzis, Michael Ryan and Patrick Barnes, the campaign generated more than 80 qualified buyer enquiries.

“152 Lt Lonsdale Street is 100% leased across multiple income streams, strategically reassuring a strong holding income in the event of future redevelopment,” Mr Wolman said. “The intergenerational asset, offered for sale for the first time in 46 years, sits within the north-east pocket of the Melbourne CBD, which has become a hub for a mix of development outcomes by major institutional players.

“Most notably, the site is located directly opposite Charter Hall’s $1.2billion Wesley Place office development, which will provide 110,000sqm of prime commercial accommodation to a world class tenancy mix including Vanguard, Telstra Super, Cbus and Australian Super.”

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