Savills Investment Management and APPF Commercial to sell 800 Collins Street, Melbourne

05 October 2017

One of Melbourne’s trophy commercial assets located in a coveted precinct is now for sale.

Situated within Docklands in Melbourne, 800 Collins Street is a modern A Grade building, incorporating ground floor retail shops and 10 upper levels of office space with two levels of parking. Savills Investment Management (on behalf of one of their global mandates) and Australian Prime Property Fund Commercial, managed by Lendlease Investment Management, are collectively selling their 100% interest in the prominent asset.

The building is fully occupied by tenants including retail giant Myer and Latitude Financial Services (formerly GE Money) who have entered a 10 year lease, providing a diversified tenancy mix and increasing the building’s Weighted Average Lease Expiry (WALE) to circa six years.

JLL Victoria Sales & Investments Directors Langton McHarg and Paul Kempton have been conjunctionally appointed to market the asset alongside Savills Australia Capital Transactions Directors Ian Hetherington, Simon Fenn and Ben Azar.

Built in 2010, the building comprises 28,619.2sq m of office space, 873.4sq m of retail space and total capacity equalling 29,492.6sq m with expansive floorplates of circa 2,900sq m.

The A Grade, 5 star NABERS rating building is easily accessible by city arterials roads and connected directly to the Melbourne Central Business District, Southern Cross and Flinders Street rail stations.

Langton McHarg, Head of Sales & Investments at JLL said “The Melbourne office market is rated by JLL in the top two best performing office destinations in the world making Melbourne office assets very attractive in comparison to other office markets.

“Over the last two years Melbourne has continued to increase its relevance on the global investment stage and is forecast to become Australia’s largest city by 2030. It is experiencing a phase of extraordinary positivity due to its strong economy, infrastructure and culture that is extending across all of its property markets.”

According to Ian Hetherington, National Head of Capital Transactions at Savills, the Docklands precinct has emerged as an important commercial location.

“800 Collins Street will attract the focus of investors globally and we are anticipating very strong interest in this asset, particularly because of its prominent Collins Street location and desirable building features,” he said.

“Currently, vacancy rates are circa one percent, therefore we expect strong growth going forward. The area remains popular with tenants in the banking, finance and insurance sectors due to the larger floor plates and ‘campus style’ buildings,” he continued.

An upgrade of the lobby and end of trip facilities is currently underway. 800 Collins Street is readily accessible by public transport with free tram services running along Collins Street from directly in front of the property, providing access to the CBD core and to the broader public transport network that services greater metropolitan Melbourne.

According to the Property Council of Australia (PCA) as at July, 2017, the total amount of office stock recorded in the Melbourne CBD was circa 4.5 million square metres. The Docklands precinct has some 19.8 percent of the total CBD stock. Since its inception in 2004, about 900,000 square metres of office space has been developed in the precinct, which is now home to several of Australia’s leading corporates.

800 Collins Street, Docklands is for sale via an Expressions of Interest campaign through Savills and JLL, closing on Wednesday 1 November 2017 at 2pm (AEDT).

 
 

Key Contacts

Ian Hetherington

Ian Hetherington

National Head
Capital Transactions

Savills Sydney

+61 (0) 2 8215 8925

 

Simon Fenn

Simon Fenn

Managing Director - NSW

Savills Sydney

+61 (0) 2 8215 8888