ASX-listed Mirvac is inching closer to striking a deal to divest a $413 million Collins Street office tower in Melbourne at about a 10 per cent to 15 per cent discount, as the commercial market slowly adapts to new benchmarks on pricing.
If completed as hoped, the mooted transaction will add fresh, and crucial evidence, that values in the direct market for many, but not all, CBD office assets have moved materially lower, in a lagged response to higher borrowing costs and weaker demand for space. A Collins Street tower, well-known as the home of a rare peregrine falcon, could soon set a fresh benchmark for falling office market values.It is the second attempt by Mirvac to offload the 38,000 sq m tower at 367 Collins Street, after tapping CushmanWakefield and CBRE to find a buyer in September last year. At the time, the tower had a book value of $427 million. Mirvac subsequently wrote the book value back to $413 million in its December valuation.