Underutilised Anzac office hits market

The permitted 20 level apartment and hotel at 10-16 Dorcas Street.

BEKL is selling an office in a precinct some agents and developers call Southbank South – near the Southbank/South Melbourne border – but which is increasingly being referred to as Anzac, after the metro station set to open next year.

The group can expect about $45 million for 10-16 Dorcas Street (which being on the northern side of the road, is gazetted Southbank).

It paid $37m following an off-market deal in 2017; it was that seller, Australian-Islamic investment house Crescent Wealth’s first commercial purchase, two years earlier.

In 2020, BEKL obtained a permit for a 20 storey project with 36 build to sell apartments and a 171 suite hotel, which was to have been operated by InterContinental Hotel Group for its voco brand.

That permit is being offered with the property.

Right side of the road

As well as developers, Cushman & Wakefield’s Oliver Hay, Daniel Wolman and Leon Ma are marketing 10-16 Dorcas St to investors and owner occupiers; the vacant office contains 10,629 sqm and 88 basement car parks (story continues below).

“Situated in the tightly held Domain precinct and in close proximity to the upcoming Anzac station…the property promises substantial growth potential for its future occupants,” Mr Hay said.

“The current permit approval for high end luxury apartments and a hotel development provides an exciting opportunity for investors looking to explore diverse avenues in a thriving lifestyle area,” according to the agent.

Elsewhere in the immediate area, Evolve recently completed two apartment projects, Botanic and Guilfoyle, on Coventry St, Southbank, sites.

Time & Place and V-Leader, meanwhile, are proposing another residential tower, Middleton Lane, at 11-17 Dorcas St – opposite the BEKL block but zoned South Melbourne, where agents say land values are slightly lower.

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Marc Pallisco

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