Deague Group has brought one of Melbourne’s most innovative new office buildings at 101 Moray Street to market, set to reinforce South Melbourne’s status as an emerging media and technology hub. The building has a price guide of more than $200 million, reflecting a cap rate of approximately 5%.
The brand new, 16,000 sqm office development was developed by the Deague Group, designed by architects Rothelowman and built by Hutchinson Builders to the highest specifications. The 8-storey building includes unique ‘wrap around balconies’ on levels 3, 5 and 6 with views of Melbourne’s CBD, and offers amenities including basketball courts, a golf simulator and Australia’s first NeuroPOD station.
The building is being sold fully leased with a WALE of over 6 years. Major media and technology, as well listed organisations Adobe, Southern Cross Austereo, Ooh! Media and Debit Success have recently secured space within the building. They will join others including Kogan, Dentsu International and Activision located in the South Melbourne vicinity.
Cushman & Wakefield’s Nick Rathgeber, Leigh Melbourne, Josh Cullen and Mark Hansen have been exclusively appointed to manage the international expressions of interest campaign.
Will Deague, Chief Executive Officer, Deague Group, said: “In 2017, Deague Group committed to speculatively building what we believe is the highest quality and most modern building in Melbourne. Our conviction about the Melbourne leasing market and specifically South Melbourne has been validated by very successful leasing outcomes, with the building now almost fully leased to various big brand tenants.”
“We have had many approaches to sell, particularly recently, but given its quality it is not something we want to sell off-market. It is a truly unique new-age building, and we want all active investors to see and have the opportunity to purchase.”
Nick Rathgeber, International Director, Capital Markets, Cushman & Wakefield, said: “From the office sale campaigns we are conducting around the country we are witnessing acquisition willingness and pricing back at 2019 levels.”
“COVID-19 really slowed down institutional-grade office investment supply in Melbourne, which has naturally created significant pent-up demand from a deep list of buyers from all origins globally. We expect a building of the profile and quality of 101 Moray Street will attract a lot of this demand.”
“The standard of design and accommodation of the building speaks for itself when you walk through, it is an incredible inspection experience,” Mr Rathgeber added.