A 12-storey office building in the heart of Melbourne’s legal precinct has been listed for sale by real estate fund manager EG Funds Management. 277 William Street is to be sold via International Expression of Interest and is expected to fetch over $80 million.
CBRE’s Kiran Pillai, Neva Courts and Josh Rutman have been conjunctionally appointed to market the Melbourne CBD property with JLL’s Langton McHarg, Leigh Melbourne and Paul Kempton.
The 12,050sqm building, located opposite to Flagstaff train station, is fully leased and provides a desirable 3.9 year WALE.
“We expect 277 William Street to unlock a key opportunity for groups looking to take advantage of Melbourne’s strong market conditions,” Mr Pillai said.
“The property’s prime position in the heart of Melbourne’s legal precinct, combined with the significant refurbishment works carried out by EG, means it draws strong interest from quality tenants and offers significant scope for further growth in the short term.”
Mr McHarg continued: “The Melbourne office market is experiencing unprecedented purchaser demand, with investors seeing considerable value from Melbourne’s booming population, limited future office supply, strong rental growth forecasts, and building value rates still half of that achieved in Sydney.”
“There are limited purchasing opportunities available within 277 William Street’s price point, and as a result we are anticipating it will appeal high net worth privates, domestic and offshore institutional groups.”
EG Divisional Director Dan Farley said: “The 277 William Street sales campaign is the culmination of a strategic capital works, asset management and leasing program undertaken by EG since acquisition. The upgraded property now boasts a strong WALE with excellent covenants while also providing access to robust upside over the short to medium term.”
Major tenant Civica recently committed to the building on a five-year term. The property has been extensively refurbished by EG as part of its Core Plus Fund mandate with recent major works including a full upgrade to the ground level lobby and retail component, together with upgrades to the on-floor facilities.
The International Expression of Interest campaign closes May 30, 2018.
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