Melbourne CBD Office Expected to Fetch $35m

A seven-storey building, formerly owned by a university and royalty, in the Melbourne CBD now on the market has been tipped to take around $35 million.

The office building at 301 Flinders Lane has three street frontages and sits on a 895sq m site.

The building provides 4747sq m of office floor space with recent upgrades and is close to Melbourne’s shopping strip on Collins Street, and cafes, bars and public transport.

Once the home of Victoria University, it has been renovated to house a tenant on each floor. Four floors are currently leased.

It is owned by the Poulakis family, who own the luxury clothing retailer Harrolds, and is estimated to bring in a fully leased rental income of $1.85 million a year.

Victoria University sold the building, also known as Reliance House, to a Singaporean-listed company controlled by Prince Abdul Qawi of Brunei in 2014 for $23.6 million. 

The university had bought the site in 1998 for $4.8 million.

According to CoreLogic records, the site next changed hands for $34 million in December, 2016 with settlement in 2017, which is when the Poulakis family acquired the asset.

▲ The building has an estimated fully leased net rental income of $1.85 million a year.

JLL’s Josh Rutman, Nick Peden and MingXuan Li will handle the sale via an expressions-of-interest campaign.

It could provide development opportunities, according to Rutman.

“This is a rare Melbourne CBD freehold that allows the buyer to owner occupy, invest or develop,” Rutman said.

The campaign will close on August 8.

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