This article is from the Australian Property Journal archive
A PREMIUM accommodation tower in Melbourne’s Southbank is up for grabs, offering potential buyers a chance at an asset suited to hotel, build-to-rent and co-living opportunities.
Comprising 115 fully furnished apartment with 160 keys, plus three cold-shell penthouses, 18 Moray Street was completed two years ago and has never opened its doors to the public.
Tanya Su, Julian Heatherich, Nick Lower and Conal Newland from Savills have been appointed to sell the property via an international expressions of interest campaign.
“This is a truly significant and unique opportunity, it is rarely seen that a building of such scale and built to such a premium standard is readily available to purchase and occupy,” said Su, associate director at Savills.
The 38 level tower includes 34 secure car parks, premium gym facilities and a reception area, with the one-, two- and three-bedroom apartment configurations are ready to occupy.
In addition to appealing to operators in the hotel, BTR and co-living sectors, the asset also presents a value-add opportunity for investors with its potential to fit-out the upper level penthouse offerings.
“We expect strong interest from these prominent buyer groups given the unrepeatable nature of the opportunity. In the current climate, bypassing construction costs for a well-located asset of scale is incredibly advantageous,” said Julian Heatherich, state director at Savills.
Lower, state director and head of hotels at Savills, also noted the potential value of the property as a hotel, as demand returns for short-term accommodation near the city.
“Hotel performance in particular sectors, is back above pre-Covid 19 levels and continues to strengthen. Areas of Melbourne continue to outperform expectations and with pipeline delivery times uncertain, there is a window of opportunity to take advantage of,” added Lower.
While co-living and BTR operators could maintain their pipelines with this already build asset, in an area already targeted for such developments.
“Coliving is an emerging asset class that has rapidly gained popularity in major markets in North America, Asia and Europe over the last decade. Emerging now in Australia as an exciting new form of housing, Coliving is quickly becoming a mainstream and attractive concept,” said Newland, national head of operational capital markets at Savills.
“Common themes of the Coliving model include fully furnished accommodation, flexible medium term rental periods, and shared communal living spaces in desirable central areas.”
The property will also no doubt benefit from its corner position on Moray and Catherine Street in Southbank’s Crown Casino precinct, on the fringe of Melbourne’s CBD.
“Underpinning the opportunity is the premium location on the doorstep of Melbourne’s CBD. The building is a short stroll from some of the world’s most highly regarded restaurants, luxury hotels, top end retail shopping, cinemas and one of the Melbourne’s principal attractions – Crown Casino,” concluded Su.
The international expressions of interest campaign for 18 Moray Steet, Southbank is scheduled to close on 30 November 2022.
