Real estate agent Tony Tai sells Melbourne office for $21 million
EXCLUSIVE
Another small Melbourne CBD office with development upside has sold.
The sale price for 212-224 King Street is speculated to be $21 million.
The vendors, including TT Global director Tony Tai, paid $3.2 million for the building in 2004, to retain as an investment.
It has been purchased by another private investor following a campaign which attracted several written offers.
More than 100 enquiries were received, according to Colliers International’s Oliver Hay, Matt Stag, David Sia and Daniel Wolman. TT Global was the conjunctional agent.
Based on the speculated sale price, the fully-leased property is trading on a low passing yield of about 2.9 per cent.
The three-level building contains 1279 square metres of lettable area – a size many would consider an under-utilisation of the 569 square metre holding.
The Southern Cross College of Vocational Education is one of the school-related office occupiers. The ground floor is rented to two retail tenants.
Between Little Bourke and Lonsdale streets, within the Melbourne CBD’s legal precinct, the property is about 250 metres from the Southern Cross train station.
Potential future outcomes promoted for the site included an education facility, hotel, office, student accommodation complex or mixed-use development.
With 30 metres of frontage to Brown Alley, any high-rise redevelopment would offer natural light, protected views and multiple access points, the brokers said.
The site is surrounded by over $3 billion worth of landmark residential, commercial and hotel developments including the Ritz Carlton at West Side Place and the upcoming Mandarin Oriental Hotel.
In April, veteran Sydney developer Harry Triguboff (pictured below, right) paid $29 million for a low rise office on a 792 sqm plot at 140-146 King Street. This site was offered with a permit for a 57-storey, 263-suite hotel. Colliers International also brokered this deal.
“On the back of current favourable economic conditions, we are working with a high number of active buyers and under-bidders on other campaigns who are eager to secure commercial assets that come to the market, particularly properties with rental upside and value-add opportunities within the Melbourne CBD grid,” Mr Hay said.
Elsewhere in the Melbourne CBD, a six-storey office on a 344 sqm block at 45 Exhibition Street recently sold for more than $20 million.
Last week, adjoining low-rise commercial properties occupying a 347 sqm holding between 37-41 Little Collins Street traded for $22.35 million. Aconex co-founder Rob Phillpot paid more than twice the guide price for these assets at an invite-only boardroom auction.
Both 45 Exhibition and 37 and 39-41 Little Collins Street were also marketed by Colliers International.
