Vic Uni sells Redundant Melbourne Office building for $40m

Victoria University have sold a redundant office building at 225 King Street Melbourne for $40m.

The 12-storey office building with ground floor retail provides 6,286sqm office space on a 707sqm site. The building was sold completely vacant, following Victoria University’s recent move to ISPTs building in Little Lonsdale Street.

Victoria University were reported to have acquired the building in 1995 for just $4.8m.

The King Street building was sold to SLB Developments at a rate of $6400/sqm however significant capex works are required to re-present the building as a viable office location. SLB Developments, is a subsidiary of another listed Singaporean real estate player, Lian Beng, a well-known trader of Melbourne commercial real estate.

JLL represented Victoria University in the sales process.

According to JLL, the sale was however a test of investor sentiment, and a demonstration of the confidence from the market in the future prospects of Melbourne CBD offices.

Nick Peddon said “Despite several headwinds over recent years, the western core precinct of the city has undergone a significant transformation in recent times, with a number of new developments underway or recently completed. Investors are confident in the fundamentals that the CBD possesses and the sale of this asset demonstrates the strong appetite for new opportunities within the CBD from local, national and international groups, all of which have bullish long-term views on the future of our city.”

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