Iconic Como Centre Hits The Market

Melbourne's iconic Como Centre has hit the market, with the landmark property expected to attract interest upwards of $200 million.

Currently owned by Mirvac, the mixed-use complex is located on the corner of Toorak Road and Chapel Street in South Yarra. Como occupies a prime 2ha site with a collective street frontage of more than 300m to Chapel Street, Toorak Road and River Street.

Colliers International's Nick Rathgeber and Leigh Melbourne, in conjuction with McVay Real Estate's Sam McVay and Dan McVay, are marketing the property.

The South Yarra trophy asset currently generates more than $14million of net income from its over 25,000sqm of office space, 6,600sqm of retail space, a 113-room hotel and a 614-bay carpark.

The office component alone is spread across four towers (644 Chapel Street, 650 Chapel Street, 620 Chapel Street and 299 Toorak Road), which collectively represent more than 60 per cent of the asset’s net income.

Several high profile tenants lease the office space, including Channel 10, which has long occupied the corner office tower at 620 Chapel Street where numerous well known TV programs, including The Project, are filmed. 650 Chapel Street is home to Clemenger, who moved to the building in December 2013. Mirvac is currently completing a capital expenditure program to the office space including extensive accommodation upgrades and plant replacement.

The Como retail centre is a well-established South Yarra retail destination and features the long-standing Palace Cinemas. Mirvac has recently received Development Approval for a redevelopment of the centre.

The Como Hotel is a 113-room, 5 star hotel comprising two food and beverage offerings, conferencing and meeting facilities, gymnasium and swimming pool. The hotel is operated by Accor, one of the world’s leading hotel operators, under a lease that expires in June 2021 (subject to a further five year option at Accor’s election).

Como also has a 614-bay car park, which is operated by Wilson Parking on a lease expiring on 31 August 2016.

Mr Rathgeber said the scale and nature of the offering was seldom found in the Australian property market.

“The Como Centre is one of the best known properties in Melbourne and is very familiar to both the interstate and overseas visitors who frequent the hotel and high-quality retail offering,” he said. “We expect the scale of the real estate, the diversity of the income stream and the iconic nature of the asset will be of great appeal."Sam McVay said: “Rarely does an opportunity arise to acquire a landmark asset of this calibre that has genuine and immediate value-add opportunities. The Como, with its excellent tenant covenant and unrivalled location, represents this opportunity. We expect this property to be highly sought after, both domestically and internationally.”