Zig Inge Group is selling the St Kilda office for years occupied by Austereo which used the rooftop for concerts on behalf of its Fox FM and Triple M radio stations.
Nowadays, 180 St Kilda Road is fully tenanted to ASX-listed Victory Offices.
It recently underwent a high-quality refurbishment which included a central atrium over its three floors.
Colliers International marketing agents Peter Bremner, Rachel Clohesy and Leon Ma expect the price point – mid-high $20 million, reflecting a sub six per cent yield – to capture a mix of suitors, amongst them private investors, syndicates, metropolitan and offshore funds.
They added Melbourne’s city fringe market is one of the most in-demand for office investors.
On a 1258 sqm Commercial 1 zoned block, developers plotting a long-term pipeline, could also also express an interest in 180 St Kilda Rd. Victory’s lease expires in 2025.
Zig Inge makes good of problem child building
Directed by AFR Rich List member Zig Inge, the company paid $9.4 million for 180 St Kilda Rd in 2015 (story continues below).
At the time it had been empty for 14 months.
A high-quality refurbishment was undertaken, creating 2951 sqm of A-grade quality workspace, which it leased in 2018. The property includes 54 basement car parks, too.
According to Mr Bremner, buyers currently “are seeking well-leased, medium to long term WALE [weighted average lease expiry] investments located in prime markets”.
Ms Clohesy added a modern asset, leased to an ASX-tenant, is seldom found in Melbourne’s metro market.
About six kilometres south of the city, near the bottom of the St Kilda Road, Melbourne, commercial strip, 180 St Kilda Rd was once occupied by Village Roadshow, which is now headquartered at South Yarra’s Jam Factory.
Southern Cross Austereo, meanwhile, relocated Fox FM and Triple M’s studio to Clarendon Street, South Melbourne in 2010 – sub-letting the St Kilda office, at the time owned by Australian Unity, until its lease expired in 2014.