Flinders Lane’s Pawson House for sale

Pawson House, between Russell and Exhibition streets, has development upside.

The warehouse converted Flinders Lane building part-occupied by high-end restaurant Coda is for sale.

Pawson House, rising eight levels at the south west corner of Oliver Lane, is expected to trade for $35 million.

Developed in 1935, it contains 1541 square metres of predominantly office area – all of which is renovated.

Fully leased, the Weighted Average Lease Expiry is 4.5 years.

Colliers’ Daniel Wolman and Oliver Hay are the agents.

Advise Transact is representing the vendor, Peter Hart, who is responsible for the super-thin apartment tower which replaced Lou Richards’ Phoenix Hotel, on Flinders Street.

Mr Hart is also proposing an office on the site of Collingwood’s ex-Club 80.

Prime pocket: agents

“This pocket of the CBD is officially recorded as the Flinders Lane East precinct and is widely regarded…as the most sought after and seldom traded pockets within the Melbourne CBD,” Mr Hay said of Pawson House’s address.

“The precinct continues to draw specific interest from world leading fashion houses, hospitality groups and associated businesses,” he added.

The listing comes four months since The Hour Glass spent c$35m on the retail component of nearby 181 Collins St.

In 2018, Rolex paid the Liberal Party of Australia $37.1m for the historic Centenary House, at 104 Exhibition St, to occupy.

Development upside

At 141-143 Flinders Ln, Pawson House is opposite the former Church of Scientology building, which Chanel acquired from David Marriner in 2011 to occupy.

Also in the vicinity is 139 Collins St, tenanted to Louis Vuitton, which was snapped up last year by The Hour Glass for $68m – 35 per cent over expectation.

Last week, we reported Jackalope Hotels founder Louis Li was behind the recent $25m purchase of 175 Flinders Ln from Helen Sykes.

“We have experienced in 2021 the overwhelming pent-up demand for prime Melbourne CBD assets from local, interstate and offshore investors,” Mr Wolman – who also marketed 175 Flinders Ln, 139 Collins St and 104 Exhibition St – said.

“When you couple this with the immediate pocket on Flinders Ln between Russell and Exhibition streets, the competition for an opportunity like Pawson House exceeds to another level,” he added.

“Pawson House is ideal for family offices or high net worth investors,” according to the executive.

“It will also attract elite global retail investors that collect trophy assets in major cities around the world such as Paris, London, New York, Shanghai, Tokyo, Singapore and Hong Kong.

“The property also has provision under the planning scheme to see additional levels added”.

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Marc Pallisco

A former property analyst and print journalist, Marc is the publisher of realestatesource.com.au.