City of Melbourne-owned carpark rolls onto the market, could sell for $155m
The City of Melbourne is selling an eight-storey CBD carpark, once used as an arts hub, that industry insiders expect to fetch up to $155m. See what it might be turned into next.
The City of Melbourne is offloading a CBD multistorey carpark, formerly used as a community arts hub, that’s expected to sell for up to $155m.
The eight-level carpark at 34-60 Little Collins St, known as the Parkade building, is being marketed as a prime development site, with the council likely to incentivise affordable housing as part of any future development.
Proceeds from the sale will be reinvested in city infrastructure projects, the council’s website states.
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Real estate investment trust Dexus currently operates the site’s 940 carparks under a lease with the council that’s set to end in 13 years.
“The sale of the land would not terminate the existing lease – meaning that unless a mutual agreement is reached to terminate the lease, the car park would continue to operate until 2037,” the council’s website reads.
In 2021, the carpark was used for the MPavilion’s arts program, including performances, as part of the City of Melbourne’s pandemic recovery strategy.
Commercial real estate firm JLL’s Josh Rutman, Nick Peden, Paul Kempton and Piper Dedrick declined to comment, but industry sources indicated the 3885sq m site was expected to sell for between $30,000 to $40,000 per square metre, similar to other properties in the surrounding area.
That means the Parkade could sell for anywhere between $116.55m to $155.4m.
It’s understood that although the carpark was only listed this week, buyers from Sydney and Asia have already inquired about it.
Expectations are that it could be redeveloped into an office building, boutique hotel or residential property.
The modernist-style, circa-1960s building was designed by noted architect Peter McIntyre, who also contributed to the Melbourne Olympic Pool, Parliament Station, the 12 Apostles Visitor Centre and the Jam Factory.
Expression of interest close at 2pm on October 9.
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Originally published as City of Melbourne-owned carpark rolls onto the market, could sell for $155m
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