A prime office investment within Melbourne’s most expensive postcode representing the final piece of the intergenerational Treasury Square precinct is hitting the market.
Colliers’ Melbourne City Sales team, led by Daniel Wolman, Oliver Hay, Matt Stagg and Leon Ma, have been exclusively appointed to handle the sale of 289 Wellington Parade South, East Melbourne via an International Expressions of Interest campaign closing in the early June 2022.
The property is located on the doorstep of the Melbourne CBD and comprises a five-level commercial building which forms part of a larger strata titled mixed use development.
Built in 2009, the office accommodation spans in excess of 5,500sqm and presents in very good condition, with floor to ceiling windows providing an abundance of natural light and sweeping views across the Melbourne CBD. The building also benefits from 56 secure car spaces, high quality end of trip facilities and an exclusive rooftop terrace overlooking Treasury Square, the East End of the CBD and the surrounding gardens.
Mr Wolman, Colliers’ Head of Investment Services in Victoria, said the property was home to the finest level of occupants and residents, with no other inner city suburb of such a high calibre.
“This is Melbourne’s most valued East End precinct, defined as the heart of culture, amenity, sport and Government,” he said. “This pocket has its own exclusive demographic, with a strong presence of leading global businesses providing a strong tenant covenant for investors.”
The asset is vastly unique in its location, directly adjoining the imminent Treasury Square development that is set to dramatically reshape the precinct.
“There are no other assets that will provide an equal opportunity to directly capitalise on Treasury Square, other than 289 Wellington Parade itself,” Mr Wolman said. “Treasury Square will redefine the precinct over the next decade, delivering a new type of product which is prestigious, sustainable, dynamic and which will generate an immense increase in amenity and connectivity into the Melbourne CBD.”
Counterbalancing the fast-paced CBD, the property is framed by the lush green spaces of Treasury Gardens, Fitzroy Gardens and Birrarung Marr which provide a unique scenic backdrop for its occupants.
The building is leased a very strong tenant covenant, anchored by Government and global insurance businesses offering security for incoming purchasers. Additional income is derived from Arthur J. Gallagher’s exclusive rooftop signage rights.
“The strong lease profile, security of tenure and diversified income stream will be highly attractive to local and offshore investors,” Mr Wolman said. “We believe the opportunity for future naming rights will also be a major selling factor for owner occupiers.
“The neighbouring Treasury Square development will no doubt also be a key consideration for buyers. The property’s lease profile will significantly change over the next few years as the Treasury Square development comes to life and provides first class amenity, maximised connectivity and premium grade commercial accommodation for the precinct.
“The property will be positioned to capitalise from major rental growth and secure A-grade tenants based on the exclusivity of Treasury Square.”
The premium nature of this asset and location positions it to be highly competed for in a market that has seen limited activity over the past two years.
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