Zig Inge offers Austereo’s former HQ following refurbishment

The office (outlined), near the bottom of the St Kilda Road, Melbourne, strip, has development potential once the lease to Victory expires in 2025.

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 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, Rachael 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 the St Kilda asset 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 workspace, which it tenanted 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 metropolitan market.

About six kilometres from the CBD, near the bottom of St Kilda Road, #180 was also 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 from St Kilda to Clarendon Street, South Melbourne in 2010 – sub-letting the St Kilda office, at the time owned by Australian Unity, until its rental agreement expired four years later.

Zig Inge undertook a major renovation of 180 St Kilda Road including incorporating an atrium to increase light over its three floors.
Victory Office’s lease at 180 St Kilda Road, St Kilda, expires in 2025.

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Marc Pallisco

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