Salta accepts discount for city office
Salta Properties has finally moved a small CBD office but for far less than hoped.
The ex-ASF House, later known as Citicorp House, at 63 Exhibition Street, fetched $45 million after the second marketing campaign in four years.
The buyer is Commonwealth Superannuation Corporation, or CSC, owner of the landmark 101 Collins St office next door.
This suitor was expected: CSC has in recent years bought every property abutting 101 Collins to come up for sale, to prevent the airspace being developed, robbing views and rents.
But the price was not; Salta withdrew 63 Exhibition St from sale in late 2020 when the guide was $90m.
JLL’s Josh Rutman, Jesse Radisich and MingXuan Li were the agents.
Permit fails to squeeze premium
Salta outlaid $37.5m for 63 Exhibition St, on 894 square metres, in late 2014 (story continues below).
After obtaining a permit for a 52 level mixed use building (artist’s impression, top) – predominantly a 225 key hotel – the property was unsuccessfully offered for sale in late 2020.
Last February, it hit the market again, with a $75-$80m guide.
Three months later, a $75m deal to Lendlease was purported.
CSC is expected to retain the c1969, 13-level, 6123 sqm office as an investment.
The deal comes six years since the same buyer outlaid $27.5m for a six storey office on 344 sqm at 45 Exhibition St – again abutting 101 Collins St – which was being marketed for its development upside.
CSC also controls several suites in a six floor strata office, ACCI House, at 55 Exhibition St – power enough to block any quorum allowing the airspace being used.
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