IIG offers historic Collins Street office

The Collins Street office is expected to sell for about $70 million.

Liberman family backed Impact Investment Group is selling a historic CBD office after seven years.

At 401 Collins Street, the Trustees Building is expected to trade for about $70 million.

The vendor paid $32m, later undertaking a $24.5m refurbishment.

All but the ground floor retail component of the 12 storey asset is vacant after WeWork recently quit its tenancy, which was due to expire in 2029.

IIG acquired the asset with a 10 year leaseback to Gary Morgan’s Roy Morgan Research – which vacated in 2016 following a high-profile spat over a replacement lift.

Colliers’ Daniel Wolman, Matt Stagg, Oliver Hay and Leon Ma have the listing.

Trustees Building

Built in 1937 and also known as Bank of Tokyo House, 401 Collins St contains 6758 square metres of area.

The property was where military leader General Douglas MacArthur established a US Army Forces command centre in 1942, during World War II.

“The history of the building is reflected in the charming heritage façade, which has become a statement along the famed Collins St thoroughfare,” Mr Wolman said.

“There are only a handful of buildings of this historic nature and quality ever available to the market, which will no doubt be well received by the insatiable pent-up demand and active buy side capital in the market as the year draws to a close,” he added.

Natural History Public Bar occupies the ground floor on a lease expiring in 2030 (story continues below).

Pent up investor demand: Colliers

The office levels of 401 Collins St average 560 sqm.

“Floor plates of this size are key in the market,” according to the agent.

“It allows the ability to lease the whole building to a single tenant or alternatively on a floor-by-floor basis to boutique occupants seeking a prime Collins Street HQ,” Mr Wolman said.

“The accommodation also offers basement end of trip facilities and an impressive rooftop with envious 360 degree…views,” he added.

“This particular pocket of Collins St is known as the financial precinct and has seen the investment of major commercial projects in the last five years including Rialto, Olderfleet and Collins Arch”.

It has also witnessed significant sales activity – with the neighbouring, much smaller, Commercial Union Chambers building selling to Peachtree Capital earlier this year for $40m.

In April, Justin Hemmes’ Merivale acquired the distinctive Tomasetti House, about a block and a half way, for its maiden Melbourne hospitality venue.

Also in the first half of the year, Holder East outlaid $30m for an office with development upside at 170 Queen St, while private investor Charles Ng paid over $40m for the ex-RACV Club at 422 Little Collins St.

Two months ago, HThree, in its first Australian deal, spent $72.625m for 446 Collins St, diagonally adjacent to the Trustees Building.

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Marc Pallisco

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