King St party precinct building has eyes of very serious buyers

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KING ST may have a reputation as a night-time party.

However, an office complex on the corner of Bourke St and King St, Melbourne, attracts a lot of interest from paid points from Singapore

.

The 12-storey building at 601 Bourke St could soon get a $ 60 million price, according to CBRE Josh Rutman.

Investors and international developers have shown interest in delivery of office buildings in Melbourne right now, according to Mr. Rutman.

"All interests have been around $ 60 million, which is a correct cancellation of what they paid for it a while ago."

Another 12-storey building with CBRE at 454 Collins St, Melbourne, currently attracts between $ 35 million. And $ 40 million, he added.

While the building was solid and yielded a strong return on its leases, the long-term future of the site was almost certainly a development opportunity – giving it an edge in the current market, according to Rutman.

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"There are a number of people looking at the future height advantage."

"And there is no doubt that in the future the site will be developed to a much higher density. "

A neighboring area has been cleared into a 52-storey development, indicating what the capital area could have achieved structure, he added.

But in the near future investors were tipped to get upset, with space to grow the already strong lease return.

"The location coupled with the triple street frontage makes a big difference," said Rutman.

The building faces Bourke St, King St and Gallagh is the place.

Currently is the home of tenants, including Toshiba, Study Group and Pragmatic Training.

West of Melbournes CBD has experienced significant developments in recent years with luxury apartment towers and hotels duging to the area. [19659003] Expressions of interest for the building is due April 26.

It is for sale via CBRE together with Savills Australia.

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