2022 kicks off with a significant and long held Melbourne CBD office asset coming the market for first time in 35 years

Allard Shelton together with JLL lists a completely refurbished commercial and retail building situated along one of the city’s most highly trafficked pedestrian thoroughfares

Being offered for the first time in 35 years, a fully leased office and retail asset situated along Elizabeth Street, Melbourne has come to market as the first true test of investor appetite in 2022.

Allard Shelton’s Joseph Walton, Patrick Barnes, Michael Ryan and Christian Hatzis together with JLL’s Executive Director of Capital Markets, Josh Rutman, Director Nick Peden and Associate MingXuan Li have been appointed to sell 108 Elizabeth Street via an International Expressions-Of-Interest campaign.

Originally known as the Brashs and Carnegie & Sons buildings dating back to the early 1900s, the property underwent a full refurbishment and presents as a brand new and meticulously designed offering that features flexible office floor plates with exclusive amenities to attract tenants that prefer their own self-contained office spaces. The building was consistently leased throughout the COVID periods of 2020 and 2021, which is testament to its long-term appeal.

Centrally located between Collins and Bourke Streets, with a significant frontage along Elizabeth Street, the seven-storey building is leased to a number well-established international and publicly listed tenants, generating a passing income of approximately $1,881,785 per annum with fixed annual rental increases built into each of the lease agreements.

Mr Walton said, “Whilst buildings like this always hold infinite appeal due to the sheer shortage of supply, 108 Elizabeth Street is arguably more attractive to buyers in a post pandemic market given its attractive size and strong tenant mix which demonstrates its ongoing appeal for today’s business occupiers.”

Ideally designed for tenants of the future, the building has access to high levels of light and ventilation as well as an outdoor rooftop garden with views across the CBD, which offers a unique experience for tenants within the building.

“There has been a distinct lack of quality investment stock on market with reliable income streams and given the building leased exceptionally well throughout the recent lockdown periods, investors will draw great confidence that the asset will stand the test of time”, Mr Walton said.

Mr Rutman said, “The building is essentially brand new with no projected short-term costs for an incoming purchaser. Based on its recent leasing record, it will continue to be well sought-after by tenants looking for high quality space, which together with the depreciation benefits that come with a new project of this nature, will prove highly attractive for investors”.

Walton further commented, “Being strategically located within the heart of the CBD retail core adjoining the Block Arcade and only metres to Collins Street, Bourke Street Mall and Flinders Street Train Station, the property is very well-positioned within one of the lowest office vacancy rate precincts in the Melbourne CBD.”

“108 Elizabeth Street is an ideal fully leased investment that is not dissimilar to a block of residential apartments in that when vacancy arises, tenants are quick to fill the space and start paying rent”.

Both domestic and international investors remained active during 2021, with several office building transactions taking place at new pricing benchmarks, and this is expected to continue in 2022 for quality holdings that come to market for sale.

Mr Rutman said, “International investors, particularly in Singapore, Malaysia and Hong Kong, are actively seeking strategic assets in the Melbourne CBD, and despite the travel restrictions throughout 2021, interest continues to be solid. With the building’s strong tenancy mix, 108 Elizabeth Street provides an excellent investment opportunity for these groups, particularly those with a presence already in Australia.”

To request a copy of the Information Memorandum please contact one of the marketing agents via the contact details below.