Challenger to Sell 330 Collins Street Office Building For $130 Million
The 18-storey, 17,829 square metre renovated A-grade building has a huge 66 metre frontage to Collins Street, and is on the corner of Elizabeth Street – a block from Flinders Street Station to the south, and Bourke Street Mall to the north.
As well as the office tower, ground floor levels of the building are in Collins Street’s “super prime” retail core, and leased to formal menswear store Henry Bucks, and shoe store Florsheim. The rear of the building opens onto Equitable Place, a popular restaurant and cafe precinct.
The building was purchased in March 2001 by the HSBC Australia Property Trust, which has since been transferred into the Challenger Premier Hybrid Property Fund.
During a major refurbishment in 2002, HSBC had to fork out an unexpected $30 million to remediate the property, after asbestos was discovered in ductwork and behind brickwork. It re-opened in 2005 and took about two years to fill.
National Australia Bank is the biggest tenant in the building, occupying a ground floor shop and the four upper levels of the building. The rest of the building is leased to smaller tenants.
Colliers International chief executive officer John Marasco is marketing 330 Collins Street with Knight Frank managing director Paul Burns, and Clinton Baxter. He is expecting it to sell for around $130 million, which would reflect an average market yield – factoring retail and office components – of 6 per cent.
