Former Atlas Assurance Building fetches $30m
Lawyer Adrian Abrahams has sold Collins Street’s former Atlas Assurance Building – in what is expected to be the first office in the street to settle this year.
The 65 year old, 12 storey asset on 411 square metres at #404-406 is trading to an as yet undisclosed private investor for about $30 million – a circa 5.8 per cent market yield.
Mr Abrahams paid $23.1m – a 4.4pc return – in 2016.
That seller, Acupuncture Distributors Australia and New Zealand owner Dorian Ribush, picked it up for $14.6m a decade earlier.
The latest deal comes six months since Mirvac agreed to sell the Optus Centre at 367 Collins St for c$400m.
404-406 Collins Street
Developed in 1958, 404-406 Collins St, with its curtain wall glass façade, is listed as significant on the Melbourne Planning Scheme.
With 3861 sqm of A-grade space, it has also been known as Concept House and Praemium House (story continues below).
Cushman & Wakefield’s Daniel Wolman, Oliver Hay and Leon Ma with MMJ Real Estate’s Joel Wald represented Mr Abrahams; in the heart of the city’s financial precinct, the asset was marketed as a value-add opportunity, with a short weighted average lease expiry of 1.33 years by income.
Eleven offers came in.
“The asset was hotly contested as investors vied for a place in one of Melbourne’s premier business locations,” Mr Wolman said.
“It defied market challenges with hundreds of enquiries and multiple offers, with the transaction standing as a testament to long-term investor confidence,” he added.
The deal comes four weeks since Jimmy Goh paid a consortium including music promoter Michael Coppel c$35m for the seven storey, 5995 sqm 333 Queen St, on 1028 sqm at the north west corner of La Trobe.
In April, meanwhile, a Chinese investor outlaid c$30m for a 12 level, 4682 sqm office on 509 sqm at nearby 99 Queen St.
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