Knock-out offer of $18 million snares Asian investor Melbourne’s 363 King Street

A birds-eye view of the West Melbourne office (highlighted).

A knock-out offer of $18 million has compelled the vendor of a West Melbourne office to sell prior to the close of an expressions of interest campaign.

The three-storey brick building on a 1112 square metre site at 363 King Street is selling to an Asia-based investor.

“The purchaser was looking to secure a destination to invest in Melbourne, which they see as a safe haven for their money,” Colliers International broker Daniel Wolman, said.

“We fielded extremely strong interest throughout the campaign from investors, owner occupiers and developers.

“Interest was so high, in fact, that the property was taken off the market early due to the competitive nature of this record offer and strong terms”.

Near the corner of La Trobe Street, the 2590 square metre building has view security over Flagstaff Gardens.

An expressions of interest campaign launched in late July by Mr Wolman with colleagues Oliver Hay and Matthew Stagg, was supposed to close tomorrow (September 6).

On land zoned Mixed Use, the agents touted the “extraordinary” redevelopment potential of the site, which carried initial price expectations of about $16 million.

Colliers also promoted the $250 million Queen Victoria Market redevelopment and $11 billion Metro Rail project as factors which would “directly benefit” 363 King Street.

Once occupied by Ralph A Stuart and Co Wool Brokers and known as NCO House, this address was identified in this West Melbourne Heritage Review submitted to the Future Melbourne (Planning) Committee in 2016.

The inner north-west precinct of the CBD has seen an abundance of development in recent years – apartments, student accommodation and education facilities, amongst the stock created.

Last month, we reported a four-level office, 115 Batman Street, West Melbourne, sold for just over $22 million. Also touted for its potential to be redeveloped, this 2791 sqm building on an 853 sqm block sold to investment house IOOF.

An image used in the marketing campaign showing 363 King Street in relation to the Melbourne CBD.

Marc Pallisco

A freelance property writer and experienced analyst, Marc is the co-founder of realestatesource.com.au

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