Telstra to sell huge Melbourne CBD site
Telstra has put an enormous tract of land up for sale in Melbourne’s CBD in one of the largest development offerings in the city in the past 10 years.
The 4164sqm landholder at 308 Exhibition St spans almost an entire city block, with street frontages to Exhibition and La Trobe streets and views over Carlton Gardens and the Royal Exhibition Building.
Telstra is expected to field huge interest in the site from developers, with the price tag tipped to balloon beyond $100 million.
CBRE has been appointed to market the property, with Charter Keck Cramer representing Telstra as Transaction Advisor.
The CBD corner site is a part of Telstra’s Exhibition Telephone Exchange and was once mooted for a huge tower project to be developed by Telstra, however that plan has quite clearly been scrapped.
It currently houses a number of smaller offices and other amenities.
The unparalleled significance of this premier site will culminate in what we expect will be the strongest and most competitive sales campaign in Melbourne for 2016
CBRE senior director Mark Wizel says he is expecting almost unprecedented interest in the land, due to the scarcity of landholdings this size.
“Whilst a number of active offshore Asian developers have made their mark on the Melbourne skyline, a number of larger players have been waiting for an opportunity of this profile for many years,” Wizel says.
“We expect sophisticated offshore developers, both private and publically listed, to show strong interest in the site, with a view to potentially hold the finished asset for generations to come.”
Wizel says whichever form the site’s development takes could eventually transform the face of the CBD.
“This particular pocket of the city has been starved of quality built form outcomes for years and the future buyer has the opportunity to potentially redefine the north-eastern gateway to the Melbourne CBD.”
We expect sophisticated offshore developers, both private and publically listed, to show strong interest in the site
CBRE senior associate director Josh Rutman says offshore developers will flock to get their hands on the site.
“It has been a very long time since the market has seen an opportunity of this scale and quality. Securing a footprint of this magnitude in a premium CBD location will be of particular interest to offshore developers, with the site offering multiple development options beyond a standard office or residential tower in isolation.”
“The unparalleled significance of this premier site will culminate in what we expect will be the strongest and most competitive sales campaign in Melbourne for 2016.”