Budget airline's HQ hits the market for a whopping $65 million
The long-term headquarters rented by Jetstar Airways has hit the market for the first time since 1997 and for a price expected to soar above $65 million.
At 79-91 Victoria Parade in Collingwood, Victoria, the office building and future development site overlooks the Melbourne Cricket Ground and the East Melbourne parklands.
Colliers and CBRE have been enlisted by Henkell Brothers Investment Managers to sell the property via an international expressions of interest campaign.
Kathryn House, the Head of Corporate Affairs for CBRE, reveals “price expectations exceed $65 million”.
Occupying about 5241 square metres, the building is described on the listing as “Collingwood’s best mixed-use redevelopment opportunity”.
The building contains an undercover commercial car park as well as a gymnasium.
Three tenancy agreements have final expiry dates in place, with the buyer to secure vacant possession in 2027.
A representative for Jetstar Airways confirmed to Nine that Jetstar does not own the building and that their lease has always been set to expire in late 2027.
The airline plans to remain in place until at least that time, regardless of who owns the building, while also considering other longer-term options in Melbourne.
Trent Hobart, CBRE’s senior director and head of development, says in an official statement: “This site is destined to gain the attention of the full local, national and international developer market.
“It’s the last corner site of over 5000 with a sought-after Commercial 1 Zone that allows residential and mixed-use development, that would likely include luxury residential apartments, build-to-rent, hotel and/or retail showroom space.”
Jozef Dickinson, Colliers’ national director for residential development sites, also said in a statement: “This is the perfect site that fuses East Melbourne luxury with chic Collingwood, coupling with some of the best view lines back to the CBD skyline, MCG and stunning parks in between.”
Collingwood is an inner-city suburb of Melbourne, 3km northeast of the CBD. The area is known for its galleries, cafes, restaurants, bars, boutiques and vintage stores.
The expressions of interest campaign closes at 2pm on August 30.
Hobart and Dickinson are handling the property campaign alongside Matt Stagg and Philip Heberling of Colliers, and Nathan Mufale and David Minty of CBRE.
