Rialto’s million-dollar views at risk following Charter Hall buying 555 Collins Street

Fragrance Group’s proposed residential redevelopment of the site is now canned.

Charter Hall has expanded its footprint at the south-west corner of Collins and King streets, in the Melbourne CBD, following an off-market deal.

For Charter Hall’s Prime Office Fund, the manager is paying $140 million for a rundown 24-storey former government office built in the 1970s for years known as Enterprise House (pictured, top).

The landlord owns the neighbouring 55 King Street (pictured bottom, right) – which rises eight storeys.

Following the latest purchase, it controls a combined 4620 square metres of the block.

Knight Frank’s Paul Henley and Scott Newtown represented Singapore’s Fragrance Group, which had planned to rebuild 555 Collins Street as a residential project.

Instead, Charter Hall will turn the corner into an office.

It is unknown if one office tower will utilise the amalgamation.

The block is opposite Rialto Towers – for years Melbourne’s tallest skyscraper.

At the opposite end of the city recently, Dexus paid $230m to create a c2000 sqm holding at the corner of Collins and Exhibition streets – specifically, $160m for the Reserve Bank of Australia building at 60 Collins St, following a public campaign, and $70m on the neighbouring property – 52 Collins St – following an off-market negotiation.

Early this month we reported South Korea’s National Pension Service was selling 595 Collins Street, near Enterprise House.

On about 4000 sqm, that asset is expected to trade for more than $300m following a campaign managed by CBRE’s Neva Courts with JLL’s Luke Etherington, Nick Rathgeber and Paul Kempton.

55 King Street with 555 Collins Street in the background.

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Marc Pallisco

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