Four Floors in Melbourne CBD Tower Net $11.2m

The demand from owner-occupiers and investors for Melbourne CBD office and retail space is intensifying, says JLL, with four properties in the one tower selling for a combined $11.21 million.

The properties at ground, Level 1, Level 2 and Level 9 at 420 Collins Street, Melbourne, sold after an expressions-of-interest campaign that attracted local, interstate, and international interest, according to the agents.

JLL’s Melbourne CBD Sales agents, Nick Peden, Josh Rutman, Tim Carr and Mingxuan Li, handled the campaign for 420 Collins Street on behalf of partners at Grant Thornton Australia in their capacity as the agents for the mortgagee.

With 30 offers to purchase and more than 200 buyer enquiries, the campaign generated competitive bidding from motivated owner-occupiers and investors based locally and off-shore.

The successful purchaser was a Victorian investor who bought all four properties in-one-line.

The sale price of $11,210,000 reflects a building rate of $8236 a square metre, a building record, and a 55 per cent premium on the sale of level 6 in the same building in April 2023.

Director and head of JLL Melbourne CBD sales Nick Peden said there was “no doubt that transaction volumes in the Melbourne CBD are lower than the long-term average”.

“However, this most recent deal is evidence of the significant current demand for well-located Melbourne CBD real estate.

▲ The ground level of the Collins Street tower.

“To generate 30 offers to purchase highlights the depth of interest and the current scarcity of opportunities to purchase.

“The sale of 420 Collins Street is a clear signal of the strong fundamentals of the Melbourne CBD market driving the immense appetite to purchase from the wider buyer market.”

The ground floor retail showroom, Level 1, Level 2 and Level 9 provided a total building area of 1361sq m and was the previous home of Victory Offices.