In a major move for one of the larger educational institutions in Melbourne, Victoria University has elected to sell its King Street holdings, which provides a rare opportunity to purchase an entire office block in the heart of Melbourne’s legal district.

JLL’s Josh Rutman, Nick Peden, Mark Stafford and MingXuan Li have been appointed to sell 225 King Street, Melbourne for sale by public tender.

Built in 1988, the prominent 12-storey tower has a modern façade, excellent floor-to-floor heights, two elevators, ground-floor retail and basement car parking. Its upper levels benefit from natural light on all four sides and views across the CBD and flagstaff gardens.

Mr Rutman said, “Investors are gravitating towards assets that offer sound locational and building fundamentals, and 225 King Street presents an excellent proposition for an office repositioning project in a high growth precinct.”

Situated within the Flagstaff precinct of the Melbourne CBD, 225 King Street benefits from being part of the top-performing CBD precinct in recent years. The strength of this precinct is underpinned by its consistent sub 6% vacancy rate throughout numerous lockdowns, with the next best being the Parliament precinct with a vacancy rate of 8.6% in 2021, and the quality of tenants that have moved into the precinct in recent times.

Mr Peden said, “225 King Street provides solid fundamentals for future occupiers, with convenient access to major transport hub Southern Cross Station, and prominent positioning on the CBD’s major north-south arterial, King Street.”

“These key fundamentals, and ongoing development has seen a flurry of activity within the precinct, with the expansion of the education and biomedical precinct to the north, and new developments such as 555 Collins Street to south, attracting major occupiers like Amazon to the CBD’s western end,” Mr Peden said.

The net lettable area of 6,268 sqm includes flexible floorplates of 360-600 sqm, suitable for single-floor tenancies as well as whole-building occupancy. Victoria University – now in a new, purpose-built facility nearby– has partially refurbished the interior, with laboratories and classrooms still in place.

Zoned Capital City 1 with a commanding 37-metre frontage to King Street and a second frontage to Uniacke Court, the property has the potential to provide a diversified income stream in Australia’s most liveable city, which has reopened to international students and visitors.

“Flagstaff has one of the highest occupancy rates of Melbourne’s office precincts, and 225 King Street presents a distinct opportunity for investors to take advantage of future tenant demand,” Mr Rutman said

“Recent times have seen larger occupiers committing to new and re-positioned stock within the precinct, as the city continues to thrive in its return from an 18-month hibernation. The success of major new developments such as the nearby West Side Place and Aspire will breathe new life into the CBD and bring a significant increase in the living and working population of the western end of the CBD,” he said.

“225 King Street opens the door to new owner-occupiers looking to reposition themselves. It’s very rare that a whole building is offered to the market with vacant possession, and there is potential to convert this property to another use, such as residential or a hotel. For investors, the floorplates are in line with a single tenancy per floor, which in the current climate many tenants are looking for. With natural light on four sides, this property has a unique advantage,” Mr Peden said.

The public tender campaign for 225 King Street, Melbourne closes on Thursday, April 28th 2022 at 2pm (AEST). 

To request a copy of the Information Memorandum please contact one of the marketing agents JLL’s Josh Rutman, Nick Peden, Mark Stafford and MingXuan Li via the contact details below.