By Cam Lucadou-Wells
Dandenong’s landmark Government Services Office building is up for sale – with hopes for a $170 million-plus price tag.
The eight-storey, Six Star Green Star building at the corner of Thomas and Walker streets was built and owned by Grocon.
Global property consultants Knight Frank is running an international Expressions of Interest campaign on behalf of Grocon and its owners, the Grollo family.
Since the building opened in 2012, most of its 15,070 square metres has been long-leased to the State Government.
The GSO houses staff from its education, justice, human services and planning departments.
The existing lease runs until 2032.
“This is the first government long-leased office investment in Melbourne to be offered to the market in 30 years,” Knight Frank capital markets head Paul Kempton said.
“This investment offering is incredibly rare and will be highly sought after.
“The security of the lease to the Victorian State Government, which will run for at least another 10 years, will attract buyers, but beyond that there is certainty in the office market, with Dandenong having one of the lowest office vacancy rates in Melbourne as tenants increasingly move to non-CBD locations.”
Knight Frank institutional sales head Trent Peece said the property was a “rare 100 per cent freehold interest in a premium investment offering”.
The office market had major growth occurring due to $2 billion of private and government investment as part of the State Government’s Revitalising Central Dandenong initiative, he said.
The EOI process closes Wednesday 30 March, 2pm.
