Two buildings in the centre of Melbourne have been transferred to new ownership in one of the biggest office transactions of the year so far.
Colliers’ John Marasco, Anna Cavar, Oliver Hay and Adam Woodward, in conjunction with Mark Coster, Kiran Pillai, Scott McGlone and Stuart McCann of CBRE, sold 1010 La Trobe Street, Melbourne and the adjacent Innovation Building for $150 million to Singapore-based Straits Real Estate via local investment firm Artifex Property on a 5.07 per cent initial yield.
The sale included the three separate components of 1010 La Trobe Street, a separate car park in the podium of 1000 La Trobe Street comprising 163 bays, and the Innovation Building at 192 Harbour Esplanade.
City Harbour and SF Australia Property Investment II sold the parcel, which is managed by EURAMCO Asset Management.
1010 La Trobe Street is a nine-level office building that also incorporates retail tenancy along with office accommodation, while the five-level Innovation Building comprises four upper levels of office accommodation with a foyer and secure server rooms.
Ms Cavar said the deal presented “a unique opportunity to acquire a 100 per cent interest in these two buildings which have large, functional floorplates, spectacular water views and unparalleled connectivity and amenity”.
“They are situated on an exceptionally large underlying land area in an established government precinct with an enviable tenancy profile,” she added.
She also noted there was potential to add value through tenant management and a curated capital expenditure program.
Straits Real Estate and Artifex Property have indicated they intend to embark on upgrade works and revitalisation of the assets.
Mr Coster noted the investment would benefit from significant renewal of the inner-city corridor.
“A new masterplan for the city harbour precinct has been developed incorporating a central park, which will be an active centre, with large trees and paved paths connecting Harbour Esplanade and Digital Drive.”
The properties were first marketed for sale in 2021 and attracted interest from a variety of capital sources, according to Colliers. Straits Real Estate was a strong contender throughout the process and was aided by Artifex Property’s local knowledge, which was able to navigate the transaction during Melbourne’s lockdowns.
ABOUT THE AUTHOR
Based in Sydney, Juliet Helmke has a broad range of reporting and editorial experience across the areas of business, technology, entertainment and the arts. She was formerly Senior Editor at The New York Observer.
Never miss a beat with
Stay across what’s happening in the Australian commercial property market by signing up to receive industry-specific news and policy alerts, agency updates, and insights from reb.
Subscribe to reb Commercial: