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CUB’s Melbourne Headquarters Sold to Victorian Government in $95m Deal

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Carlton & United Breweries has sold its headquarters in Melbourne’s Southbank to the Victorian government in a deal worth $95.5 million.

The beer giant’s building will form part of a longer-term strategy for Development Victoria as it looks at other properties in the vicinity.

CUB staff occupy the 11,679 square metres of lettable space in the triangular shaped building which is located on the corner of Sturt Street and Southbank Boulevard.

The company is on a three-year lease which will allow the government to formulate plans for the site.

CUB bought the six-storey building when completed in 1991 for $5 million. CUB is a fully owned subsidiary of Anheuser-Busch.

The sale comes off the back of a heated run in 2017 for Melbourne CBD office transactions, which reached a record high of 20 deals for a total transaction value of $3.88 billion, according to a report by Savills. The total reflected a more than 200 per cent increase over 2016.

[Related reading: Strong Employment Growth Puts Pressure on Office Space in Sydney, Melbourne]

Melbourne’s CBD sales volumes were supported by strong investor demand taking advantage of the low interest rate and low yield environment.

The results underpinned a historically high year for greater Melbourne, including the CBD, fringe and suburb areas, which tipped a total $4.77 billion of office sales, marking the strongest 12 months since 2014.

CBRE reported that Melbourne was Australia’s standout office market in the third quarter of 2017 outperforming Sydney’s prime grade market in all aspects.

Construction giant Grocon has just purchased a site at City Road, Southbank for $35 million where it is considering entering the build-to-rent sector.

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Article originally posted at: https://theurbandeveloper.com/articles/cubs-melbourne-headquarters-sold-to-victorian-government-in-95m-deal-