A 50% interest in the most contemporary office tower in Melbourne’s Southbank – 2 Riverside Quay – is being offered to the market.
The trophy waterfront asset, with uninterrupted CBD views over the Yarra River, was built in 2016 and largely pre-committed to global accounting giant PwC, with the building more than 10 years newer than any office tower in Southbank.
The half share in the property is for sale by IFM Investors (formerly ISPT), via an International Expressions of Interest (EOI) campaign run by Knight Frank agents Trent Preece and Tom Ryan in conjunction with Kiran Pillai, Scott McGlone and Ben Schubert of Savills.
2 Riverside Quay comprises a 21-level A-Grade office tower providing 21,132 sq m of net lettable area over Ground and Levels 10 to 21, together with 567 podium car spaces over Levels 1 to 8.
It is 82% occupied by major tenants including PwC, Fender Katsalidis and Wilson Parking, with a WALE of 5.3 years and a fully leased net passing income of $18,160,176 per annum.
The light filled office floors benefit from natural light to all four sides and uninterrupted panoramic views of the CBD over the Yarra River.
The building offers exceptional onsite tenant amenity including modern end-of-trip facilities, activated ground floor retail, dual lift cores and an expansive outdoor terrace on Level 21, while immersed in Melbourne’s best lifestyle amenity.
The building features high ESG credentials including a 5.5 Star NABERS Energy rating and 4.5 Star NABERS Water rating.
Knight Frank’s Trent Preece said: “2 Riverside Quay is the first opportunity for investors to secure a centrally positioned, modern prime Melbourne office tower during the current cycle.
“The asset will have strong appeal given the long WALE, exceptional tenant profile including 73% leased to PwC until 2034, and modern improvements featuring high ESG credentials supporting tenant demand and futureproofing the asset.
“Investors are actively seeking high-quality modern office towers to take advantage of the worldwide flight-to-quality phenomenon, together with the upcoming lack of new supply. 2 Riverside Quay is the newest and most contemporary office in Southbank, making it the number one choice for tenants in this highly captive submarket.
“Melbourne offers greater counter-cyclical upside than any other office market in Australia. Investors are cluing onto this compelling proposition – supported by strong fundamentals including high population growth, a diversified economy, unparalleled infrastructure investment and affordability.”
Savills’ Kiran Pillai said Southbank was one of Melbourne’s strongest performing office submarkets, with the lowest share of sublease vacancy and the second lowest office vacancy rate in the city.
“Over the past three years the majority of tenants have opted to stay in the precinct, with Southbank being home to major global corporate tenants including Apple, Microsoft, Samsung, IBM, Kraft Heinz, Asahi and Saputo. Southbank tenants are generally sticky to the location, finding it difficult to leave the surrounding amenity and unparalleled accessibility.
“Connectivity of this central location is a key factor, and 2 Riverside Quay is just a 400 metre walk from Flinders Street Station, as well as being close to Crown Casino and the Melbourne Art’s Precinct.
“There is more than $2 billion in surrounding investment including the $200 million redevelopment of the Crown Casino, a $400 million mixed-use development at 1 Queensbridge and the $1.7 billion Melbourne Arts Precinct project, all of which will transform the future of Southbank.”
The International EOI campaign for the 50% interest will close on Thursday 30 April 2026 at 2pm (AEST).
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