Fortis buys Collins Street office from receiver
Fortis has made its maiden Melbourne CBD play, picking up an office listed last month by Suleman Group receiver KordaMentha.
On behalf of clients, the Sydney based investment house and subsidiary of alternative lender, Pallas Capital, is paying $60.35 million for 470 Collins Street.
The result reflects a fully let market yield of 9.1 per cent.
The asset is about seven per cent vacant.
Suleman paid $30.55m in 2011 to eventually redevelop.
Cushman & Wakefield’s Oliver Hay and Daniel Wolman with CBRE’s Jamus Campbell and Nick Peden represented KordaMentha, which is acting for ANZ Bank.
Fifteen offers came in, they said, with the sale unconditional a week after the expressions of interest campaign closed.
Value add, development upside
Covering 1467 square metres, 470 Collins St was marketed for its development, neighbouring the historic Maker’s Mark building, which in 2019 had a 60 level apartment tower, Collins House, built into the airspace.
Harry Stamoulis is also behind one of the area’s tallest towers – the 69 storey 568 Collins St, completed a decade ago.
The Suleman offering – with 10,201 sqm over 16 floors, and 31 car parks, also has strong investment attributes, the agents added, especially following a refurbishment.
The ground floor is configured as three retail tenancies.
Fortis plans to retain it.
In recent years, in Melbourne, the company has completed commercial assets in Cremorne and South Melbourne.
It has also delivered apartment complexes in Richmond and South Yarra.
The Collins St deal comes a year since a group director, Charles Mellick, bought a Double Bay office built on the site of the c1938 Vogue Theatre – coincidentally again from KordaMentha as receiver.
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