A prominent Flinders Street commercial car park in Melbourne has been acquired by a listed Singaporean company following a hot contest among investors and developers keen to capitalise on the property’s strong cash flow and excellent future development potential.
Colliers International’s Daniel Wolman, Matthew Stagg and Oliver Hay have sold the 1,270sqm car park at 380 Flinders Street on behalf of a private family that has held the property for more than 30 years. It has been reported the property sold for more than $31 million.
The seven level, 315-bay car park is a purpose built facility, accessed via Flinders Street with two further entrances/exits to Foxton Lane and Tavistock Lane. It is managed by Secure Parking, with the top floor leased to AAPT for its fibre cabling network, as well as ground floor retail.
View from the roof of 380 Flinders Street MelbourneMr Wolman said the International Expressions of Interest campaign generated more than 150 enquiries and almost 20 genuine bids from qualified buyers across Australia, China, Singapore, Malaysia and Hong Kong. The eventual purchaser was a listed company out of Singapore, who purchased the property for an undisclosed price.
“Despite offering a relatively low yield given the potential of long leases up until 2028 if all options are taken, buyers fought to get their hands on the site due to its irreplaceable and unrepeatable location near Flinders Street Station and its world class views towards Southbank and the Crown Casino precinct,” he said.
Mr Wolman said the property had excellent future development potential once leases expired. The site has three prime frontages, including one of the largest frontages to Flinders Street of more than 36m.
“The property is located next door to the former Fletcher Jones site at 1 Queen Street, which has a permit for 18 levels on only 746sqm,” he said. “It overlooks the Yarra River, with views directly towards the Crown Casino precinct.”
Mr Stagg said the low cost of debt and volatility in share markets, agents expected to receive competitive bids from long term passive investors as well as developers.
“Car parks are a scarce and tightly held asset class,” Mr Stagg said. “They are popular because they are a low maintenance investment that generate strong long term cashflow.”