$270m price tag tipped for Myer’s Docklands HQ
Melbourne’s office market is readying for one of the largest offers of the year.
The owners of the Myer headquarters at Victoria Harbour in the Docklands are preparing to sell the complex which could trade for about $270 million.
The building, at 800 Collins St, is half owned by the Lendlease managed Australian Prime Property Fund Commercial and half owned by Savills Investment Management.
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The complex serves as the National Support Office for the retail giant and it spans about 28,620sqm of office space over 10 levels and about 874sqm of retail space, plus two levels of carparking.
Bovis Lend Lease developed the Myer offices for APPF Commercial and European funds giant SEB Asset Management — which was taken over by the Savills investment unit in 2015 — bought its half-interest in the Myer complex in 2010 from the Lendlease-run fund.
It bought for about $76.87 million on a capitalisation rate of 7.75% of forecast fully leased net income, but property yields have since tightened.
The most recent comparable deal was by Charter Hall’s wholesale Prime Office Fund, which purchased an office building at 990 La Trobe St, Melbourne, for $114.5 million.
That deal was struck on a yield of about 5.5%.
The offer of 800 Collins St comes as three Melbourne towers in the TCA portfolio remain in play and several smaller building are being prepared for sale.
The A-grade Myer complex has a 5-Star Green Star v2 Office Design rating and it has a NABERS energy rating of 5.0.
This article originally appeared on www.theaustralian.com.au/property.
