Vicland, headed by Bill McNee, is selling a South Yarra office developed on the former Jam Factory car park.
The new nine-level building, 11 Wilson Street, could trade for c$70 million, which would reflect a five per cent yield.
The property is fully let, with a seven year Weighted Average Lease Expiry.
Colliers’ Daniel Wolman, who sold the 1125 sqm site to the developer four years ago, described the investment as one of suburban Melbourne’s best offerings in years.
In 2016, Mr McNee banked $6.5m selling his former headquarters – a two level complex he built at nearby 529 Chapel St – marketed as “the world’s best office”.
Eight months ago, the developer was granted approval to construct a nine-level commercial building in Toorak.
11 Wilson Street, South Yarra
The Wilson St property contains c6300 sqm of lettable office area rated Premium – the best quality available, followed by Prime, then A-grade.
Co-tenancy group The Commons contributes 47 per cent of the $3.43m net passing annual income; it is also on the longest lease, at 10 years (story continues below).
Market research firm Ipsos, digital design group Impress!ve and two advertising agencies– Revolution360 and 10 Feet Tall – are other commercial users.
Hotworx, which offers exercise programs within infrared, heat-absorbed spaces, occupies a 306 sqm ground floor retail fit out.
“This is an exceptionally convenient location for commercial tenants offering unrivalled amenity and connectivity,” Mr Wolman said.
“The tower features a stunning glass façade boasting abundant natural light, private terraces to the upper levels, end of trip facilities and basement car parking,” he added.
It also has CBD and Port Phillip Bay views.
“There are no city fringe assets that can compete with this”.
The office is close to the Jam Factory, which is set for a major refurbishment and extension with offices, residential, a hotel and additional retail.
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