RACV Club office for sale with high rise permit

The office was developed in 1990 for RACV Club.

The former RACV Club office is for sale as a permit-ready development site.

Rising 10-levels, 422 Little Collins Street, in Melbourne’s financial precinct, has a $45 million guide.

Developed in 1990 and held by RACV, Vicland then Becton, it last traded 11 years ago to Dilato Investments.

Cambridge International College was once a major tenant but the property – with 5246 sqm of area and 17 basement car parks – has been empty since March.

Colliers International’s Matt Stagg, Oliver Hay, Daniel Wolman and Guy Wells close an expressions of interest campaign next month.

Offices, apartments could replace hotel plan

The ex-RACV Club office spreads a 956 sqm site between William and Queen streets.

In 2018 the property was approved for a 22-storey, 239-key hotel designed by Metier3 Architects.

However given the Capital 1 zoning, the land could instead make way for another commercial project, or a residential one (story continues below).

The Little Collins Street site is permitted for a 22-level building.

Last year Golden Age acquired 130 Little Collins St as a permit-ready hotel site then amended the 27-floor scheme for a workplace, now being offered for sale as strata suites.

As an office, 422 Little Collins St could contain about 14,000 sqm; the average floorplate would be 600 sqm. It has natural light to three sides.

“This location is recognised as Melbourne’s premier business address and the engine room of the Victorian economy,” Mr Stagg said.

“Experienced investors and developers realise this location will be the most in-demand by tenants as business returns to normal throughout the CBD,” according to the executive.

“Given Collins St real estate is so tightly held…Little Collins St is the most favourable alternative as it offers the same level of CBD access and amenity”.

Mr Wells added the property is near the established RACV Club Hotel at 501 Bourke St, and two new facilities: Hilton Melbourne Little Queen (478 Bourke St) and W Hotel (455 Collins St).

Last November, the four-storey Louis Vuitton store at 139 Collins St, on the south east corner of Russell, traded for $68m against c$50m price hopes.

Two months ago an art deco office at 411 Collins St sold for $40.5m.

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Marc Pallisco

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