RMIT University is preparing to sell and lease back its prominent Bourke Street tower in the Melbourne CBD.

The 23,014 sqm tower currently comprises a blend of office and teaching space and has been significantly refurbished in recent years.

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 its building at 235 Bourke Street.  

At a glance:

• For sale through jointly appointed CBRE and Gross Waddell
•  235 Bourke Street Melbourne CBD
• RMIT owns the strata lot comprising levels four to 17, the sale would involve a lease back for five years with options
• International Expressions of Interest campaign
• Interest set to exceed $120 million

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,” he said.

RMIT owns the strata lot comprising levels four to 17 and Hewison said the sale would involve a lease back for five years with options. 

Image: 235 Bourke Street Melbourne CBD. Source: CBRE.

CBRE’s Kiran Pillai said the building was surrounded by some of Melbourne’s pre-eminent office towers and was set to further benefit from the delivery of the new Town Hall train station.

“The property offers investors a true value-add opportunity in a precinct of Melbourne that is set to go through significant structural change in the near term,” he said.

“It offers everything that investors are seeking at the moment, including a strong and secure existing income with significant future upside.” 

Gross Waddell’s Andrew Waddell said quality investment opportunities like this were highly sought after. 

“Properties such as 235 Bourke Street are rarely offered to the market, with the building’s location at the epicentre of the CBD’s commercial, cultural and retail precincts set to be a key draw card for prospective purchasers.”

The International Expressions of Interest campaign will commence in mid-July with interest set to exceed $120 million.

Similar to this: 

West Melbourne office asset sold to complete $60 million portfolio - CBRE

Mentone commercial freehold property sold for circa $2.1 million through Gray Johnson

Preston commercial freehold property for sale