FKP to Sell TAC's Geelong Headquarters

A year after winning the rights to develop the Transport Accident Commission’s new Geelong headquarters, developer and fund manager FKP is motoring out of Geelong and selling the building.

Sources say FKP could reap anywhere between $70 million and $100 million for the Geelong development site, on the corner of Brougham Street and Clara Street, which is to make way for a 16,000 square metre A-grade office building, with ground floor retail space.

FKP picked up the site in October last year, after it paid $278 million to purchase rival Wilbow Corporation, which had just tendered to build the Geelong building for the TAC.

The TAC has signed a 20-year lease to occupy the Geelong space, paying a starting rent of approximately $295 per square metre. The property is expected to sell on a yield of between 6 per cent and 7 per cent.

Colliers International chief executive officer John Marasco confirmed he is handling the off-market sale, when contacted by Capital Gain. He said first round offers have been received for the property, and negotiations are underway with those parties.

The TAC will controversially move from its current Exhibition Street CBD headquarters in 2009. The exercise, which is expected to result in a massive turnover of staff, will be an interest case study for other CBD-based corporate clients considering shifting staff from the city to the outer suburbs or provincial areas.

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