Private developer City Harbour has put two of its office towers, worth as much as $160 million combined, on the block in Melbourne’s Docklands, in one of the largest such offerings to hit the city’s disrupted market in recent months.
At 1010 La Trobe Street, the two buildings represent around half of a broader project that City Harbour has pursued across the Docklands site. City Harbour was recently rebranded from Digital Harbour, a private development platform backed by the Liberman family, investment house Qualitas and three smaller investors.
The larger, nine-storey building of more than 15,000sq m is known as Customs House. It is occupied mostly by government tenants. Its companion, the five-level Innovation Building, with close to 5800sq m, has NBN Co among its tenants.
Colliers’ John Marasco, Anna Cavar, Oliver Hay and Adam Woodward, in conjunction with Mark Coster, Kiran Pillai, Scott McGlone and Stuart McCann of CBRE, have been appointed to sell the two towers.
“On offer is a unique opportunity to acquire a 100 per cent interest in these two buildings which have large, functional floor plates, spectacular water views and unparalleled connectivity and amenity,” Mr Marasco said.
“They are situated on an exceptionally large underlying land area of 6811sqm in an established government precinct with an enviable tenancy profile.
“There is also potential to add value through tenant management and a curated capital expenditure program, offering the purchasers the opportunity to capture the rewards of investing in one of the CBD’s last growth areas.”
The two towers, each on individual allotments, are being sold in one line together with a separate car park in the podium of 1000 La Trobe Street.
The offering comes as Melbourne emerges from its fifth lockdown, which came just as the commercial property was showing signs of re-emerging.
In March, Swiss fund manager Fidinam swooped on a CBD office tower in a $40 million deal with Swinburne University, which was keen to bolster its finances by selling real estate after the loss of international students.
In a similar deal midway through last year, RMIT University offloaded a 14-storey CBD property for more than $120 million.
Since then, a classic Collins Street office block, built in the 1930s and now home to the head office of Chinese e-commerce giant Alibaba, sold for more than $40 million while in another deal, residential developer Burbank sold its headquarters, a historic five-storey building at 100 Franklin Street, for nearly $30 million to developer Landream.