RMIT University is hoping to sell its prominent Bourke Street tower for $120 million and lease it back as part of a long-term strategic plan.
The 23,014sq m tower in Melbourne’s CBD consists of a blend of office and teaching space and has been significantly refurbished in recent years.
If RMIT is successful, the 235 Bourke Street strata lot, comprising levels four to 17, would eventually be leased back to the university for five years with options.
RMIT property services executive director Chris Hewison said the property was outside of its core city campus location and was not considered a long-term strategic asset for the university.
“While our ownership of the property has been regularly reviewed since the completion of the Swanston Academic Building in late 2012, the process has been expedited in light of Covid-19,” Hewson said.
The listing comes as Victoria posts a record 317 cases of Covid-19, which has negatively impacted commercial sentiment, according to the latest ANZ-Property Council survey.
Since the start of July, three RMIT students have tested positive for the virus in separate instances and attended the Bundoora, Point Cook and Brunswick campuses, which had to be deep-cleaned.
The Bourke Street building, known as The Tivoli or Building 108, is located in the city campus and was built in 1969.
It is currently used for students studying English, training and short courses.
RMIT has jointly appointed CBRE’s Kiran Pillai, Mark Coster, Scott McGlone and Stuart McCann with Gross Waddell’s Andrew Waddell, Raoul Salter, Michael Gross and Danny Clark to manage the sale of the building.
They will run an international expressions-of-interest campaign which started in mid-July and they expect the price to exceed $120 million.