The Victoria Liberal Party has sold its long-held offices in the centre of Melbourne for $37.1 million.
The six-storey city headquarters, located at 104 Exhibition Street, offered to market for the first time in more than 40 years, was purchased by an undisclosed high-end luxury retail brand with plans to make the building their new Melbourne headquarters.
Colliers International confirmed the sale of the 83-year old office block at a sales rate of about $16,100 per square metre on net lettable area.
The building comprises 2,550sq m of floor space, including prime ground floor retail, commercial accommodation, a rooftop terrace and basement.
Colliers International Melbourne city sales team of Daniel Wolman, Matt Stagg and Oliver Hay brokered the deal.
“With an expected price of over $30million, the campaign saw over 110 genuine enquiries and received 10 strong and reputable bids,” Wolman said.
“The demand for this asset shows us the true strength in the Melbourne property market with aggressive offers coming from Local Private Investors, Offshore Investor and Listed Institutions.
“The final bidder was a very high-end luxury retail brand who have purchased the building with plans to owner-occupy for their Melbourne head quarters.”
The purchaser was represented by King Independent Property Advisers and the sale proceeds will now be held in an investment vehicle called the Harold Holt Foundation.
“With high profile ground floor tenants, and being located in one of Melbourne’s most blue chip corner locations, it is no wonder that several offers came in with a return of circa three per cent,” Colliers Matt Stagg said.
“The growth potential in the East End of the CBD is forecasted to continue with vacancy rates at 1.4 per cent and the new $1.8 billion development being constructed by QIDC directly across the road.”
The property also benefits from flexible Capital City one Zoning, which opens the door to adding extra levels and further development.
After 30 years occupying the space, the Liberal Party will now vacate the premises at the end of 2019 with plans to find a new office.