Up Property has purchased its first CBD asset, securing the freestanding office building at 50 Queen Street, Melbourne for an undisclosed sum. This significant milestone marks a pivotal step in the company’s continued expansion and solidifies its presence in the heart of Melbourne’s commercial property market.

The freestanding office building, spanning 9,156 sqm on a prime 917 sqm corner site, attracted significant interest, underscoring renewed investor confidence in the sector and marks the first middle-markets office building transaction in the CBD this year.

Daniel Wolman, Oliver Hay, and Leon Ma of Cushman & Wakefield in conjunction with Teska Carson’s Ion Teska, Matt Feld and Adrian Boutsakis handled the sale on behalf of an offshore vendor. 

The sale saw fierce competition, with 11 bidders—18% offshore and 82% onshore—vying for the asset. Ultimately, an unconditional offer secured the deal, outbidding ten other groups.

According to Mr Wolman, the campaign demonstrated a resurgent appetite for Melbourne CBD office assets, fueled by value-add potential and attractive yields.

“The campaign for 50 Queen Street generated over 115 inquiries, a testament to the strong demand we are seeing for well-located office buildings with repositioning opportunities. 

“With 11 bids received and two unconditional offers, the depth of buyer interest signals a clear return of investor confidence. The asset achieved a passing yield of circa 7%, reinforcing Melbourne’s position as a highly attractive market” he said.

Mr Wolman went on to say that the robust level of competition highlights a shifting sentiment in the commercial office sector, as investors increasingly recognise the long-term potential of Melbourne’s CBD. 

“We witnessed 9 strong bids from local buyers with 2 offshore investors throwing some tough competition into the mix. The sale of 50 Queen Street sets a positive tone for 2025, signaling renewed optimism and sustained demand for quality office assets in the city” he continued.

With completed projects such as the award-winning Morris Moor in Moorabbin and an impressive development pipeline exceeding $500 million across Victoria, Up Property remains committed to its aggressive acquisition strategy. 

“We are thrilled to add 50 Queen Street to our portfolio. This marks a major milestone for Up Property as our first CBD acquisition. We are strategically positioned to achieve the best outcomes while holding onto high-value assets. This acquisition is a testament to our belief in the long-term strength of Melbourne's CBD market,” said Marcus Jankie, Managing Director of Up Property.

As Up Property prepares for settlement later this year, the company looks forward to sharing its vision for 50 Queen Street and updates on the development strategy in the coming months.

Related reading 

50 Queen Street Melbourne CBD for sale by Cushman & Wakefield and Teska Carson | Commo.