Prime asset likely to attract significant interest from both developers and investors, says CBRE and Colliers International
Located at 165 Bouverie Street and 155 Pelham Street, the landmark site encompasses a land area of 2,039 square metres and provides a combined street frontage of more than 90 metres.
It also offers two highly functional office buildings with an NLA of more than 2,700 square metres plus substantial onsite car parking.
Australian Red Cross occupied the buildings before recently relocating to North Melbourne.
At a glance:
CBRE’s Josh Rutman, Mark Wizel, Julian White and Lewis Tong will steer the international Expressions of Interest campaign in conjunction with Colliers International’s Guy Wells, Oliver Hay, Trent Hobart and Daniel Wolman. Matthew Berg from Partner has been appointed to manage the transaction on behalf of Australian Red Cross.
Mr White said buyer interest would be underpinned by the favourable outlook for Melbourne’s student accommodation and office markets and by the green shoots emerging in the residential sector.
“We are anticipating interest from a broad range of buyers groups given the flexibility of the asset and the current underlying market fundamentals,” White said.
“The University of Melbourne and RMIT both have a large and growing proportion of international students – at 36 per cent and 38 per cent respectively – requiring nearby accommodation.
“Office vacancy rates are at historic lows, enhancing the income generating potential of the current improvements, while green shoots are emerging in the residential market which should lead to heightened levels of development in the future.”
Mr Wells said the site’s location in the heart of Melbourne’s education precinct was expected to generate particularly strong interest in the property’s potential for student accommodation development.
“Given its proximity to both the University of Melbourne and RMIT University, the site is positioned to capitalise on the current activity in the student accommodation sector, with developers Scape and Cedar Pacific currently completing nearby projects,” he said.
“The addition of the soon to be completed Parkville Train Station, only a couple of hundred metres away, will further enhance the connectivity and popularity of the location.”
165 Bouverie Street has a 1.5-star NABERS Energy Rating and 155 Pelham Street is exempt.
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