Decommissioned Melbourne CBD substation for $6m-plus

A tiny building wedged between towers in Melbourne’s CBD is causing a big stir, after hitting the market earlier this month.

The decommissioned substation at 202-204 A’Beckett St is estimated to fetch more than $6 million, with local and foreign investors showing keen interest in the 348sqm site.

“There isn’t too many of these on the market,” says Colliers International’s Oliver Hay.

Commercial Insights: Subscribe to receive the latest news and updates

“Interest is in excess of $6 million. It is rare because of the location, which is in the fastest growing pocket of the CBD.”

Situated close to the Queen Victoria Market the property includes a vacant 150sqm warehouse-style building and a 173sqm courtyard.

The substation site spans almost 350sqm and has a large courtyard area.

Fellow Colliers agent Daniel Wolman says developers face some restrictions but the opportunities for the property are endless.

“Being an old substation it is quite a unique building, that kind of warehouse-style,” he says.

“The site has been decommissioned and is no longer being used as a substation so it can be used for anything, hospitality, development or a funky style co-working office. People can keep the facade and build around it.”

Landbankers, foreign developers and local owner occupiers are among the investors already showing interest.

The interior of the former substation.

“Everyone is looking at it,” Wolman says.

“To buy a piece of land in the city this size for under $10 million is unheard of, they just don’t exist anymore.”

The site is a short distance from Melbourne’s legal precinct and the bustling 24-hour Elizabeth St entertainment strip.

Also close by is the University of Melbourne, RMIT University Haileybury College City Campus, Flagstaff Gardens and the State Library Victoria.

The building is wedged between much larger commercial properties on A’Beckett St.

Accessible public transport includes the Elizabeth St, William St, Victoria St tram routes and the Flagstaff Train Station.

It is also close to the North CBD station, which is currently being built as part of the $11 billion Melbourne Metro Tunnel project to open in 2025.

Expressions of interest close December 6 at 12pm.