Colliers International’s Melbourne City Sales Team, Matt Stagg, Oliver Hay and Daniel Wolman have been exclusively appointed to offer for sale the high-profile address of 244-248 Flinders Street, Melbourne.
Expressions of Interest for the prime hotel site will close at 12 noon on Thursday 10 December, 2020.
The quoting price is more than $45 million (excluding GST) and the property is being offered with vacant possession and town planning permit for a new luxury lifestyle hotel development.
Strategically positioned directly opposite the recently refurbished Flinders Street Train Station, 244-248 Flinders Street, Melbourne is surrounded by the new Melbourne Metro Tunnel CBD train station entrances at Federation Square and Town Hall.
The new $11 billion Metro Tunnel is a Victorian Government major infrastructure project scheduled for completion in 2025.
Selling agent, Matt Stagg, said: “Flinders Street Station is already the busiest train station in the Melbourne CBD. When the Metro Tunnel is complete, this location opposite Flinders Street Station, between Swanston Street and Elizabeth Street, will have the highest concentration of pedestrian foot traffic in the Melbourne CBD and potentially that of any capital city in Australia.”
Current improvements include a three storey office building with a net lettable area of 3,391 square metres*. It boasts a high-profile 20 metre frontage to Flinders Street and valuable 853 square metre* underlying land area.
Capitalising on the location, the property is being offered with endorsed plans and town planning permit for a brand new luxury hotel development comprising 13 storeys, 193 rooms, restaurants and bar.
South facing rooms will also enjoy stunning views over iconic Flinders Street Station to the Southbank and the Royal Botanic Gardens. The permit has recently been extended for a further three years expiring 18 July 2023. This will enable the developer to deliver the project coinciding with completion of the new Melbourne Metro.
“The property is ideally located for a hotel that provides guests the best Melbourne has to offer and is ideally suited for tourists and business travellers alike,” Stagg said. “This is the only and the nearest development site to Federation Square.
“It is also connected to Melbourne’s busiest and most popular alfresco dining laneway of the famed Degraves Street. This is certainly an investment grade property and location.”
“Further to that, the timing of Reserve Bank of Australia’s official cash rate cut to historic and unprecedented low of 0.1% and keeping it low for atleast next three years together with quantitative easing program will be an added incentive to both investors and developers to move into investment grade asset,” he said.
Oliver Hay added: “The completion of the Melbourne Metro will also see the quality of retail, hospitality, entertainment and commercial offerings enhanced throughout the precinct.
“[The] City of Melbourne in consultation with stakeholder groups has plans to revitalise Federation Square, Swanston Street and Elizabeth Street.
Private developer Lendlease has also been awarded the rights for an Over Station Development on the corner of Flinders Street and Swanston Street. This property at 244-248 Flinders Street, being offered with vacant possession, presents a truly rare opportunity for asset repositioning or redevelopment in tandem with enhancement of the Flinders and Swanston precinct.
For further information, contact the exclusive selling agents:
Matthew Stagg
Director | Melbourne City Sales
Investment Services
Mob +61 409 411 300