WA’s Ascot Secures Record Melbourne Metro Office Deal

An office block 17km east of the Melbourne CBD has become the biggest metropolitan office transaction for the Victorian capital in 2½ years. Western Australian operator Ascot Capital paid $54.35 million for the Blackburn asset in a sale brokered by JLL for the 7878sq m office building at 99 Railway Road. The building, completed in 2007, is fully leased to The Salvation Army on a 6.5 per cent yield and has almost 10 years remaining on the lease. The property includes 204 basement carparks and holds a 5.5 Star NABERS Energy rating, “supporting long-term resilience and operational efficiency”. JLL associate director Tim Carr said the transaction was a “significant milestone for the Victorian office market, being the highest valued Metropolitan office transaction in 2½ years”. Carr said the campaign showed “that active domestic and offshore capital are strong believers in Melbourne’s sustained recovery, evidenced by the eight total bids generated from several buyer cohorts”. “The opportunity for buyers to take advantage of current market conditions is very compelling for the right assets that have the right attributes,” he said. “Income certainty, low capex requirements, confidence in future tenant demand and a clear exit strategy are among the most important drivers for active investors.” JLL associate director, institutional investments, Piper Dedrick said “the Salvation Army’s commitment to the building, coupled with the projected total return opportunity was compelling for several buyers”. Fortis scoops up Collins St tower Meanwhile, Fortis has acquired a 16-storey office tower at 470 Collins Street for $60.35 million, the development manager’s first buy in Melbourne’s CBD. The Sydney-based firm, a subsidiary of alternative lender Pallas Capital, purchased the property on behalf of clients from receiver KordaMentha, acting for the ANZ Bank. The building was listed last month after being held by the Suleman Group, which paid $30.55 million for the asset in 2011. CBRE director Jamus Campbell, along with Cushman &amp; Wakefield’s Oliver Hay and Daniel Wolman and CBRE’s Nick Peden represented KordaMentha in the transaction. The 1467sq m asset has 10,201sq m of net lettable area across 16 floors, 31 carparks and three ground-floor retail tenancies. Fortis plans to retain the building but undertake significant refurbishments. Planned upgrades include a revitalised lobby, premium end-of-trip facilities, turnkey spec suites and full electrification to improve the building’s NABERS rating. ▲ The building is 93 per cent occupied. The sale price reflects a yield of 9.1 per cent if fully leased. Fortis head of acquisitions (commercial) for Victoria and South Australia Jordan Winada said discussions were under way with leading food and beverage operators to activate the ground floor and Collins Street frontage. The property is within Melbourne CBD’s Western Core precinct, neighbouring the historic Maker’s Mark building and is close to Southern Cross Station, tram networks and major arterials. The area is home to financial institutions, law firms and ASX-listed corporates. Fortis topped out a $50-million office scheme at 122 Moray Street in South Melbourne in October. It is slated to become the Melbourne headquarters for Fortis parent company Pallas Group. The seven-level development comprises 3627sq m of office space and 274sq m of ground-floor retail, with completion scheduled for the second quarter of 2026. Fortis has about $5 billion in projects under construction or being assessed across Australia. Current projects also include a commercial development at Manly and a $170 million luxury home furnishings gallery in Double Bay. In July, Fortis filed plans to add three storeys to a Rose Bay project .

Office
Leon Della Bosca
Thu 06 Nov 25

WA’s Ascot Secures Record Melbourne Metro Office Deal

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OfficeLeon Della BoscaThu 06 Nov 25

WA’s Ascot Secures Record Melbourne Metro Office Deal

Get the full story.

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Urban Repair: Indi Footscray Makes Case for What BtR Owes the City

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In conversation with Max Panettiere | Director, Panettiere Developments

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Planning Policy Changes: 2026 & Beyond | Brisbane | Phillip Cristaldi | Director, Mecone

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Leon Della Bosca
Thu 06 Nov 25