The Law Institute of Victoria has sold its long-term Melbourne CBD headquarters at 470 Bourke Street for more than $30 million to a private investor for a price comfortably above reserve.
The Law Institute sold the property subject to a six-month leaseback and will now look to relocate to another premise within the legal precinct.
The nine-storey 470 Bourke Street office building has a net lettable area of 3,339 square metres. The underlying land area is 916 square metres with dual street frontages to Bourke Street and Little Bourke Street with direct access to the prestigious Melbourne legal precinct.
The institute paid $1.5 million for the Bourke Street property in the mid-1970s.
“Our building has served the Law Institute and the community well for almost 40 years,” Law Institute of Victoria chief executive officer Nerida Wallace said.
“We’re excited to be moving to modern accommodation within the legal precinct so we can better support our members, the legal profession and the community.”
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The property was offered by international expressions of interest by Colliers International Melbourne City Sales Team Oliver Hay, Matt Stagg, Daniel Wolman and David Sia. The purchaser was represented by Rob Harrington of Fitzroys.
Oliver Hay said the campaign generated more than 130 buyer enquires and multiple bids from a range of owner-occupiers, investors and developers with a 50-50 split between local and off-shore interest.
He said the strong buyer response was due to the property’s prime location in Bourke Street and limited supply of significant freehold offerings during the first quarter of 2018.
Last month Cbus Property bought four nearby sites in a massive aggregation for more than $170 million and will undertake a major mixed-use development on a site of nearly 3,000 square metres.
Matt Stagg added the strong Melbourne CBD office leasing market and low interest rate environment had fuelled purchaser demand for commercial investments in the Melbourne CBD from local and international investors.
The Law Institute of Victoria was advised on the sale by Charter Keck Cramer and Russell Kennedy Lawyers. The institute is examining several leasing opportunities and is being advised by Charter Keck Cramer in the process.