Victorian government sells another public asset
In an incredibly quick surprise deal, the Andrews-Allan-Carroll administration will bank just over $20 million selling the historic State Public Offices building in the Melbourne CBD legal precinct.
It is the second time the ALP tried to shed 436-450 Lonsdale Street; in 1992 it formed part of portfolio unsuccessfully offered with a leaseback by the Cain-Kirner government.
It was relisted vacant last month, surprising the industry, which believed the prime site was being redeveloped as an investment.
It is also considered a cyclical low for Melbourne CBD office sector values.
At less than $25m, the government is accepting a discount to guidance.
Buyer scores discount and stamp duty exemption
The asset has not derived income since 2021 when the Department of Treasury and Finance emptied the last occupier, the Supreme Court of Victoria, for maintenance works it said would take six months.
In 2024, the government obtained approval to build a 23-level, 22,755 square metre office in the airspace.
The incoming owner is speculated to be a family office which may redesign the permitted project as student accommodation.
This state government is an active property vendor, this cycle also divesting assets in, amongst other suburbs, Burwood, Docklands, Epping, Parkville and Springvale South (continues below).
State Public Offices sold
Designed by Oakley and Parkes in 1924, originally occupied by the Taxation Office, the building was extended in 1941-1942 by chief government architect Percy Everett, who added three stepped-back levels.
It rises nine storeys total with 8305 sqm.
The Supreme Court occupied six floors from the mid-1990s, with eight courtrooms used for commercial and common-law matters, as well as mediation rooms, registries, judges’ chambers and offices.
The L-shaped site spans 1490 sqm.
Savills’ Nick Peden, Tom O’Halloran, Tim Grant and Jamus Campbell were the agents.
The deal is stamp duty exempt.
Subscribe to our newsletter at the bottom of this page.
