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News release

A first time offering of this superiority in 2012

575 Bourke Street, Melbourne

MELBOURNE, 23 April 2012 – In a thriving and tightly held investment market the first ‘A’ grade office building in the heart of Melbourne’s prime CBD commercial core to hit the market in 2012 will be 575 Bourke Street.

James Kaufman and Robert Anderson of Jones Lang LaSalle in conjunction with Martin O’Sullivan and Mark Coster of CBRE are offering the Bourke Street investment on behalf of a fund managed by Valad Property Group via an expression of interest campaign closing Thursday 31st May.

The property comprises a 16 level quality office tower, with ground level retail, 15 office floors and two-level basement car park.

Robert Anderson of Jones Lang LaSalle said, “The building occupies a premium CBD location surrounded by some of Melbourne’s most highly regarded commercial towers, the Law Courts and Southern Cross Train Station.  It benefits from significant base building refurbishment and large highly efficient floor plates.

“Melbourne is such a tightly held market, particularly for well leased A grade assets such as 575 Bourke Street.  It will be a great test of the market and interest is expected from both local and international investors,” said Mr Anderson.

With a net lettable area of approximately 16,201sqm and extremely flexible floor plates of 1,050 square metres, 575 Bourke Street is 89.09% leased to quality and long term tenants including Logie Smith Lanyon, McKean & Park, EO Financial Services and Equity Trustees Limited, who occupy two floors in the building.

Mark Coster of CBRE said, “A number of the current tenants have been occupiers in the building for multiple terms, a testament to the strength of the asset and its ability to attract and retain tenants. The multi tenanted nature and staggered lease expiry of the asset underpins the high quality cash flow.”

James Kaufman of Jones Lang LaSalle said, “In addition to the strong current cash flow, there is the opportunity to capture positive market rent reversion in the short term and this corresponds with strong forecast net effective rental growth in the Melbourne CBD of 4.1% pa over the next three years.”

Martin O’Sullivan from CBRE said, “Positioned between King and William Streets and featuring laneway access, 575 Bourke Street lies in the heart of Melbourne’s commercial Core.  Moments from prominent CBD buildings including Bourke Place, Rialto, CBW Melbourne and nearby Melbourne’s Legal Precinct the property is located to attract high calibre tenants particularly thfrom the legal and financial sector.

“The property also benefits from easy access to Southern Cross Station, various tram routes and nearby retail amenity including Spencer Street Fashion Station and surrounding specialty shops,” Mr O’Sullivan concluded.