Government pays $95m for CUB headquarters
The Victorian government has finalised a deal to buy the Carlton & United Breweries headquarters building in Melbourne’s Southbank for $95.5 million in a move that could spark a broader overhaul of the area.
The purchase forms part of Development Victoria’s larger ambitions for the area as it is also believed to be seeking to buy another nearby complex for a similar price. The Australian understands that the agency is among the groups circling the Melbourne television headquarters of the Seven Network that was put up for sale by the NSW motoring organisation NRMA last year.
That complex was marketed for about $90 million and is a key element of the area as it sits on Harbour Esplanade, adjacent to Etihad Stadium.
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The building has a weighted average lease expiry of 15 years from June 2010 and the state agency would probably work with the TV station on its requirements if it buys the complex. The TV station may even shift earlier into a more modern complex.
Real estate agency Colliers International is handling the sale but declined to comment. The Victorian government said it often looked at “strategic opportunities” to acquire available sites across the state, but did not comment further.
The deal with the beer giant, which is now part of the AB InBev empire, is more advanced. A Victorian government spokesman says the government has bought the complex at 77 Southbank Boulevard, with the long-term view of returning it to public use.
“As the government finalises plans for the site, CUB will remain as the key tenant,” she says.
CUB has occupied the office block in Melbourne’s arts district, just behind the National Gallery of Victoria, since it was built in the early 1990s.
It is now on a three-year lease in part of the building, which would allow Development Victoria to reap an income while it works up plans for the complex on the corner of Sturt Street and Southbank Boulevard.
The sale delivered a hearty fillip for CUB, which bought the building for just $5 million. The sale price reflects both the heat in the commercial property market and also the site’s long-term potential.
The six-storey building at 77 Southbank Boulevard comprises 6100sqm of office space.
This article originally appeared on www.theaustralian.com.au/property.
