Race on for RBA headquarters
The race for the Reserve Bank headquarters building at the Paris end of Melbourne’s blue-chip Collins St is coming to a head with listed property player Dexus facing off against private players rumoured to include investor Harry Stamoulis and US group Pembroke.
The contest for the B-grade, 15-storey tower on the corner of Collins and Exhibition streets, comes at a time when there is relatively little stock available in the Melbourne CBD and it could sell for more than $150 million.
The parties declined to comment as did real estate agent JLL but the three are believed to have put in bids in last Friday after an initial shortlist was cut from six groups. Charter Hall and Cbus also showed interest, sources say.
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The bank occupies just 10% of the building with its employees on the top floor of the 60 Collins St complex. The building spans 13,817sqm with just over 10,000sqm devoted to offices and it also sports a high security strongroom vault.
The tenants include the Municipal Association of Victoria and Dialog, although there is a relatively short weighted average lease term.
If it is fully leased the building would generate almost $5 million worth of income at present rates, but the opportunity lies in repositioning and reaping much higher market rents.
The corner site could sustain a major development, which would suit all of the groups chasing the asset.
Any new tower would come online after the current wave of new office projects and boast a prime position in Melbourne’s CBD.
This article originally appeared on www.theaustralian.com.au/property.