Harmony lists Treasury Gardens office

Becton developed the office and an adjoining 19 storey apartment complex in 2009.

Harmony Property Investments has listed an East Melbourne office opposite Treasury Gardens.

The Adelaide fund manager can expect more than $60 million for the five storey, c5500 square metre building at 289 Wellington Parade South.

It paid $27m in 2010; the vendor, Becton, occupied part of the then one year old property as its headquarters.

Colliers’ Daniel Wolman, Oliver Hay, Matt Stagg and Leon Ma are marketing the asset this time around.

Elsewhere in Melbourne, HPI controls an office at 615 High St, Armadale, which set it back $13.5m in mid-2014, as well as commercial assets in Camberwell and Dandenong.

Last piece of the Treasury Square precinct: agents

Becton developed the East Melbourne office alongside a 19 level apartment building, 279 Wellington Pde South.

The project made headlines prior to the first sod being turned, when the developer successfully changed the suburb, formerly Melbourne, to East Melbourne, where residences command a significantly higher price.

The site is walking distance to Federation Square and both Flinders Street and Parliament stations.

“This is Melbourne’s most valued east end precinct, which is defined as the heart of culture, amenity, sport and government,” the agent said. “This pocket has its own exclusive demographic, with a strong presence of leading global businesses providing a strong tenant covenant for investors,” Mr Wolman said.

“The asset is vastly unique in its location, directly adjoining the imminent Treasury Square development that is set to dramatically reshape the precinct,” he added; the state government shortlisted Cbus and Mirvac to complete this project in 2020 (story continues below).

The state government’s Treasury Square is proposed to contain three buildings.

“There are no other assets that will provide an equal opportunity to directly capitalise on Treasury Square, other than 289 Wellington Pde itself,” according to the executive.

The office is majority leased to insurance broker Arthur J Gallagher, which also has rooftop signage rights, while another space is rented to the government.

“The strong lease profile, security of tenure and diversified income stream will be highly attractive to local and offshore investors,” Mr Wolman said.

“We believe the opportunity for future naming rights will also be a major selling factor for owner occupiers”.

The office also includes 56 car parks, end of trip facilities and a rooftop terrace.

The listing comes five weeks since Time & Place paid $50m for the Hotel Lindrum at 26-30 Flinders St, with plans to incorporate the historic building into a 30 storey tower.

Also in the area, the Besen and Roth families recently won permission to construct a 32 floor mixed use, but predominantly office building, at the rear entrance of the Harry Seidler designed 1 Spring St, at the north west corner of Flinders.

Next door to that proposal, Cbus Property is replacing the ex-Mercure Hotel (13-23 Spring St) with a high-end apartment complex.

Subscribe to our newsletter at the bottom of this page.

Share or Recommend article

Marc Pallisco

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