At the eastern or ‘Paris End’ of Collins street, this iconic Melbourne building occupies a prime location and comprises a modern high specification boutique office building of 12 levels and 3,428 sqm (originally housing the Bank of Melbourne).
52 Collins Street is perfectly positioned adjacent to the Melbourne Club and the Reserve Bank of Australia building and is opposite Collins Place.
The office space is fully leased to a range of quality tenants. These include ANU, Netwealth Investments, Optus, EP Johnson & Davies Solicitors and Medici Capital with the ground floor occupied by Koko Black, renowned Melbourne chocolatiers.
The building provides flexibility to accommodate high-end tenants seeking boutique and smaller areas with individual presence and identity while ensuring diversification of risk for the investors.
Purchased for $33.1 million in 2015 this property provides a cash return in excess of 7% per annum to investors and is essentially a strategic play focused on achieving significant capital appreciation whilst also providing a consistent distribution profile.
Since acquiring 52 Collins Street, we obtained approval to strata subdivide the building, provided new lift cars, upgraded the bathrooms and constructed a new foyer.
The property was sold to Dexus for $70 million in 2018 with settlement occurring in July 2019. The internal rate of return was 27.63% and investors received a total return of $2,500 for every $1,000 unit held.