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Challenger Premier Hybrid Fund is likely to reap around $120 million from the sale of its 330 Collins Street office building, which this week entered into exclusive due diligence with an as-yet-undisclosed private investor.
The speculated sale price equates to a yield of about 6.5 per cent, up about half a per cent on average CBD office yields, recorded in the December 2007 quarter.
Sitting on a beach in Hawaii on a staff retreat, Colliers International state chief executive and selling agent John Marasco confirmed a sale of 330 Collins Street is imminent.
He said buyer interest for the asset was strong and that there were several underbidders. He expects the much anticipated sale to be finalised within four weeks.
The 18-level, 17,829 square metre office building was always expected to be a litmus test for the strength of the investment market, and property owners will find it reassuring there are still buyers - albeit private investors - prepared to bid for assets.
Recently refurbished and fully leased, 330 Collins Street occupies a blue ribbon corner of the city at the corner of Elizabeth Street and a block from the Bourke Street Mall and Flinders Street Station.
The site also has redevelopment potential, which could include becoming an extension of shopping laneway Equitable Place, which it joins to the rear.
Knight Frank directors Paul Burns and Clinton Baxter were marketing the building with Colliers International. They also declined to elaborate on the identity of the new buyer.
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