Bourke Street strata office sells for $6.975 million – a Melbourne record

EXCLUSIVE

Melbourne’s largest strata office sale has taken place.

The $6.975 million deal for level 11 and the rooftop of 140 Bourke Street, in the CBD, comes following a Knight Frank campaign which attracted 130 enquiries and 25 private inspections.

Level 11 contains 620 square metres of lettable area. The rooftop, measuring 430 sqm, came with plans for it to be configured as a garden area with barbecue.

The rooftop (pictured, below) also has development potential.

The rooftop has development potential.

With six car parks, the investment was offloaded by HGC Administrative Services, a company directed by Kenneth Hill, owner of the Club X and CBX Money brands.

“The sale demonstrates the continued strength of Melbourne’s commercial property market and the profound interest key assets like this continue to derive,” Jack De Lutis, one of the marketing agents, said.

Multiple offers were presented to HGC by both local and offshore suitors, the broker added.

The agents said the sale price equates to a rate of $11,250 per square metre of area – but this calculation doesn’t factor in the rooftop.

Mr De Lutis marketed the vacant property with Andrew Hansen and Gellie Mendes. If it were leased, the brokers said the deal would equate to a market yield of about 4.9 per cent.

The ‘penthouse’ strata office was built into the former Hoyts Cinema Centre which local developer Michael Drapac converted about five years ago.

The 14-level 140 Bourke Street building was developed in 1969 as Australia’s first multi-screen cinema.

Marc Pallisco

A freelance property writer and analyst, Marc is a co-founder of realestatesource.com.au.

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