Victorian government homes in on Seven's Docklands HQ
Development Victoria, a state government agency, has bought the Docklands home of the Seven Network for about $100 million from the building’s owner, the NRMA.
The deal comes just weeks after the state government announced a $225 million funding agreement with the AFL to redevelop Docklands Stadium, just behind the Seven building.
It is the second major commercial tower the government agency has acquired in recent months, acquiring the former Carlton & United Breweries building in Southbank for about $95 million.
In Southbank as well, the earlier property deal also paved the way for a broader strategy. The state government this month unveiled plans to develop the country’s largest contemporary art gallery on the CUB building site.
A Development Victoria spokesman said the purchase of the Seven building at 160 Harbour Esplanade would allow it to develop long-term strategies to revitalise the Docklands Stadium and waterfront.
“The Victorian state government is funding $225 million towards the redevelopment of Docklands Stadium so it can continue to bring Victorians world-class sport and entertainment events for the next 30 years,” he said.
With 8237 square metres of office space, the 160 Harbour Esplanade building is fully leased to Seven. Around seven years remain on the lease. The 6701 sq m site overlooks Victoria Harbour.
With an income of almost $5.3 million, the Seven government deal was struck on a yield of about 5.3 per cent.
Colliers International’s John Marasco brokered the sale. CBRE’s Alex Moffatt acted on behalf of Development Victoria.
“It was a solid investment offered with the strongest possible lease terms in a premier office precinct,” Mr Marasco said.
“Docklands itself has experienced 17 years of consecutive positive net absorption and currently has the lowest vacancy rate of any precinct in the Melbourne CBD office market at just 1.2 per cent.”
