RBA’s Collins Street Win

COMMERCIAL
04-Oct-2018

60 Collins Street’s corner tower recently garnered a $160M sale (excluding acquisition costs) for the Reserve Bank of Australia. With a preliminary forecast of $100M for their headquarters, the sale marks a huge win for both the RBA and buyer – Dexus – who acquired the prominent 60 Collins St. address.

Dexus has also started the acquisition process for neighbouring 52 Collins Street for $70M, enhancing the value of the RBA site for the organisation.

60 Collins street is a 13,817 sqm tower on a 1,357 sqm site – rising above the corner of Collins and Exhibition Streets to look out over this vital section of Melbourne’s CBD.

52 Collins Street is a 3,545 sqm property on a 1,357 sqm site directly beside the 60 Collins Street building.

“These acquisitions provide us with a presence in the tightly held ‘Paris end’ of Collins Street in the Melbourne CBD.” – Darren Steinberg, Dexus CEO

The two combined sites – if consolidated as proposed by Dexus – could possibly host a 35k sqm development, ensuring significant ROI for Dexus.

“There is no better site in Collins Street to deliver the latest generation of office space in the next supply cycle. We expect office demand in Melbourne to remain strong, with the vacancy rate to fall below 4% next year and remain well below long-term averages for the foreseeable future.” – Kevin George, Dexus Executive General Manager.

The sales also carry the potential to inspire new developments on the east side of Collins Street due to the significant commercial offering they represent; a new mixed-use precinct could arise in this prominent location.

 

 

Source: Dexus ASX Release, 19 September 2018


 


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