Pembroke today announced it has exchanged contracts with SachsenFonds Australian Property Investment I GmbH and Quindex Pty. Ltd. to acquire 161 Collins Street, a 40,280 sqm Class A office property in central Melbourne, on behalf of its investors. The acquisition will be Pembroke’s third property in Australia, following 20 Martin Place in Sydney and 70 Eagle Street in Brisbane.

Originally built in 1928 and redeveloped in 1988, 161 Collins Street occupies a prime corner location within the desirable “Paris End” of Collins Street. Fronting Collins Street, Russell Street and Flinders Lane, the property is comprised of 10 floors of office accommodation with large floor plates of approximately 4,000 sqm, and a light filled atrium that connects the surrounding streets. Located in the luxury retail precinct of Melbourne, the 161 Collins Street retail tenants include Gucci and Max Mara. The building is currently 100% leased.

Focused on enhancing value with a committed long-term ownership strategy, Pembroke intends to extensively refurbish and reposition 161 Collins Street to maintain its position as a prime retail and office property. The refurbishment will include significant lobby, lift and atrium enhancements, improvement of the retail offering, and an enhanced connection to Flinders Lane. Building systems will also be upgraded, amenities will be enhanced, and office spaces will be refurbished to create high specification, sustainable, campus-style floors uniquely positioned on the East End of Collins Street.

Jack Clark, Senior Vice President and Head of Asia Pacific for Pembroke said 161 Collins Street is an exciting first investment for Pembroke in Melbourne. This property not only demonstrates Pembroke’s continued commitment to Australia, it also leverages Pembroke’s international development experience, offering the opportunity to reposition a heritage building as a signature asset that is fresh, flexible and relevant to companies today and in the future.

The refurbishment of 161 Collins Street will follow the successful redevelopment of 20 Martin Place, located in the heart of Sydney’s central business district on the city’s iconic public plaza. The new 20 Martin Place recently completed, transforming an early 1970’s building into a new, striking state-of-the-art property offering 19,080 sqm of prime grade commercial office and prime retail space over 21 levels, and featuring a new signature glass façade, as well as optimised efficiencies, performance and sustainability.