Victorian Automobile Chamber of Commerce is looking to sell its headquarters at 464 St Kilda Road. Photo: Supplied

Victorian Automobile Chamber of Commerce races to sell St Kilda Road headquarters

Nick Lenaghan|Apr 17, 2019

One of the largest office towers in Melbourne’s St Kilda Road precinct has hit the market for the first time in 60 years, with expectations of $100 million or more.

The Victorian Automobile Chamber of Commerce is looking to sell its headquarters at 464 St Kilda Road, an eight-level, 14,000-square-metre building.

The VACC, occupies about one third of the building, and will undertake a lease back over their space as part of the sale process. It stands on a 4645-square-metre double block.

“After 60 years of occupation and ownership, the time is right to divest our St Kilda Road building,” VACC president Tony Sanchez said.

The building is one of only a handful of similar size along St Kilda Road. Photo: Supplied

“We look forward to maximising the value of the asset early in 2018 to the benefit of our members in what will be our centenary year.”

The body has appointed Colliers International’s Leigh Melbourne, Nick Rathgeber, Peter Bremner, and Trent Hobart and JLL’s Langton McHarg and Paul Kempton to broker the property.

Mr Melbourne said it was one of only a handful of buildings of similar size along St Kilda Road.

“Within the St Kilda Road precinct, there are currently only 11 buildings which are situated on double sites of this nature,” he said.

“The unique scale of the property, combined with an unprecedented level of domestic and international investor interest in the St Kilda Road market, is expected to result in widespread competition throughout the campaign.”

Busy year

The St Kilda Road market has been a busy one this year.

Last month Hong Kong retail group Glorious Sun acquired a fully leased boutique office tower at 324 St Kilda Road for $42 million.

And Singapore’s Rockworth Capital Partners picked up 390 St Kilda Road for $98 million.

Mr McHarg said the VACC property had significant future redevelopment potential as well.

“St Kilda Road is also the only office market in the country with not only no new forecast office supply but reducing net office supply,” he said.

“The recent trend towards conversion of existing commercial buildings for residential development has seen the NLA in the precinct move backwards, to the benefit of established buildings.”

The VACC tower is the second significant building on the market this week, with Singapore’s Lian Beng moving to sell 50 Franklin Street in the CBD.

Colliers and Savills are appointed on that building which Lian Beng bought for $51.5 million last year, then leased up and now hopes to sell for $100 million.