ASKEW HOUSE TIPPED TO FETCH $40M

A MAJOR freehold commercial building in Melbourne's CBD is being pitched at landbankers with an eye on future development, raising expectations that it could sell for about $40 million.

The seven-level Askew House, at 364-372 Lonsdale Street, is located between Melbourne's legal precinct and the city's retail core and delivers an annual holding income of about $2 million.

Among the ground-floor tenants is Ticketmaster.

"The property is located within a rapidly transforming section of the CBD that is currently seeing extensive redevelopment and considerable uplift which has been driven by high rise residential living and an increasing student population," says Colliers International's Matt Stagg.

The property has a site area of about 780sqm and gross floor area of about 4883sqm, with 24.4-metre frontage to Lonsdale Street.

Stagg is marketing the property with Colliers International colleague Daniel Wolman, in conjunction with Kenny Oliver and Charles Carty, of Hocking Stuart Commercial.

Wolman says the building lends itself to many uses, aided by an open-plan configuration across each level.

"This configuration, combined with its premium location, has the benefit of medium-term value-add and development opportunities," he says.

"This could include conversion to residential or hotel accommodation, an iconic mixed-use redevelopment, additional office or residential levels or strata subdivision.

"The asset presents exceptionally well both internally and externally and provides an ideal retailing and office environment.

"An asset of this calibre and size is rarely come by in any city yet alone in the centre of the most rapidly growing precinct of the Melbourne CBD."