Superannuation fund REST has brought at office tower in Melbourne’s Docklands to market for more than $490 million.
The 17-storey office tower, whose tenants include Channel Nine, at 717 Bourke Street is one of just four freehold office buildings in the CBD that has direct access to Southern Cross Station.
The building has an area of 43,200sq m, end-of-trip facilities, a wellness centre and floorplates of around 3000 square metres.
It also has committed global corporate tenants including Nine, BP, NEC and AIG with a WALE of 4.3 years.
The building also has a security concierge, 360-degree views, 382 car spaces, eight retail units on two floors and a 4.5 Star NABERS Energy Rating.
The completion of the airport railway and the suburban rail loop will make the building more connected to public transportation through its access to the Southern Cross transport hub.
Cushman and Wakefield’s Leigh Melbourne, Nick Rathgeber, Josh Cullen and Mark Hansen, and Knight Frank’s Paul Kempton, Trent Preece, Ben Schubert and Neil Brookes will manage the sale.
Kempton said it was an ideal time to sell as investors were keen on assets of the calibre of 717 Bourke Street.
“The market has changed over the past few months,” Kempton said.
“The pleasing aspect is that it is not a liquidity issue—there is capital, and the change in capital mentality is that it is seeking ‘core plus’ and growth opportunities.
“This change has stemmed from the inflationary environment and interest rate rises, whereby capital is now seeking high-quality assets with core plus attributes—exactly the profile of 717 Bourke Street.”
Cushman and Wakefield research predicts that Melbourne’s population will grow by 1.7 per cent a year over the next decade, eventually overtaking Sydney and creating an increase in white-collar employment thereby increasing the need for office space in the CBD.
