Listed Malaysian developer SP Setia is paying $10 million for its fourth Melbourne development site.
At 103-105 High Street, Prahran, the 850 square metre property was offered with a permit for a nine-level, 47-unit apartment complex with lower level office and retail and 63 car parks.
The deal values the land at $11,765 per square metre - the highest recorded in the City of Stonnington municipality outside of the high-density Forrest Hill precinct, according to Colliers International selling agents, Trent Hobart, Hamish Burgess and Ben Baines.
Sixteen months ago, the unpermitted Prahran site sold for $6.2 million representing a land value of $7,294 per square metre.
"Established offshore entrants are looking to recycle funds from their initial projects creating another wave of aggressive bidding for well-located, blue-chip, permitted development sites," Mr Burgess said.
SP Setia's biggest local redevelopments are Fulton Lane in the CBD and Parque in St Kilda Road. Late last year it paid $6.7 million for 247-251 Neerim Road, Carnegie, a 2074 square metre site with a permit for a four-level, 48-unit complex.
Casey council lists Narre assets
The City of Casey council is offloading two enormous Narre Warren assets opposite Westfield Fountain Gate – Australia's second largest shopping centre.
The Casey Lifestyle Centre, on almost 4.4 hectares at 430-440 Princes Highway, but also with frontage to Narre Warren North, includes an 18,070 square metre bulky goods centre occupied by major retailers including Anaconda, Forty Winks and JB Hi Fi. The new owner cannot redevelop the site until 2033.
Another site, 1-9 Regency Drive, a vacant two hectare Commercial 1 zoned block opposite the Berwick Business Park, is within a major activity centre. Combined according to sources, the sales are expected to boost council's coffers by eight figures.
JLL's Stuart Taylor, Stephen Bolton and Peter Sprekos are the marketing agents.
Not far away the City of Monash is expecting to bank about $50 million, source say, selling a 7114 square metre site at 281 Springvale Road, Glen Waverley. A condition of that sale is that any new owner must replace 257 existing car parks with at least that many in a new development.
Flagship buys Richmond ex-tobacco factory
Developer Flagship Property Group, of which infrastructure developer and fund manager Plenary Group is a major shareholder, is speculated to be paying more than $9 million for Richmond Hill's historic Tas Pickett P/L Tobacco Factory.
Built some 90 years ago at 195 Lennox Street, the former industrial property was offloaded by interests associated with the co-founders of diversified adviser, Tract Consulting, which has been based at the Richmond address for decades (now as a tenant).
Wulff Projects, directed by Adam Wulff, the son Tract co-founder, Rodney, recently banked $8.6 million selling 243-247 Queens Parade, Fitzroy North to developer Goldfields Group.
The 1482 square metre former tobacco factory site was marketed to developers by Colliers International's Jeremy Gruzewski, Peter Bremner and Ted Dwyer.
Across town at 3 and 5-15 Shiel Street, North Melbourne, developer Fridcorp is seeking to increase the height of a permitted eight-level apartment proposal it just acquired. That vendor, Spec Property, recently lodged plans to build apartments on Doncaster site it bought last year with only a planning proposal in place.
COLLARTS building sold
Australian College of the Arts (COLLARTS) administrators will soon send rental cheques to a new landlord, with the double-storey South Melbourne building, home to the educator since 2007, selling for more than $2.7 million.
COLLARTS pays annual rent of $164,491 to occupy the 879 square metre building on a 550 square metre block with 18 car parks.
The lease expires in 2018, when the purchaser may wish to exploit new planning regulations allowing buildings up to 18 levels. Not far away at 51-59 Thistlethwaite Street and 476-484 City Road, the City of Port Phillip Council approved a 161-unit complex being reviewed by the Victorian Civil and Administrative Tribunal at the time.
Lemon Baxter's Nick Bade and Ned Kukic sold the COLLARTS building the day after the expressions of interest closed.
Thomastown retail fetches $12.9m
CoInvest, which administers a service leave scheme for Victorian construction industry members, has -sold a Thomastown showroom for $12.9 million.
The 1.1 hectare Dalton Road asset is leased to a variety of bulky good businesses that contribute to the annual rent of $1.125 million. The property, therefore, exchanged on a yield of about 8.7 per cent.
Earlier this year, CoInvest banked $26 million selling the Bundoora Square shopping centre, and more than $6 million offloading a Scoresby office. JLL's Stuart Taylor, Stephen Bolton, Andrew O'Connell and Matt Ellis with Charter Keck Cramer's Andrew Grant, marketed CoInvest's portfolio.
Another club repurposes inner-city holding
The 49-year old Abruzzo Club has repurposed its substantial property holding after recognising that relying on membership from an ageing patronage was no way to a prosperous future.
Documented as one of the State's oldest Italian clubs, the society has smashed out the ground level of its brutalist Brunswick East headquarters, opening itself to what is now the thriving Lygon Street retail hub.
A new 150-seat restaurant owned by the club, 377 on Lygon, replaces a private function space most passers-by would not have known existed. An enormous 330-seat function venue still operates on the upper level of the 1980 building.
The East Brunswick, retail strip is growing as developers add ground level shops to new apartment complexes. Haberdashery retailer Clegs chose to retain its store opposite the Abruzzo Club when it shut its 90-year old Elizabeth Street, city, store, nine months ago.
Meanwhile in town, the 129-year old Celtic Club last month listed for sale its historic Queen Street headquarters after obtaining a permit to replace airspace with a 48-level tower. The club hopes to bank $25 million and occupy the lower four levels of the proposed new building.
Freemasons Victoria plans to occupy just over 1000 square metres at its East Melbourne holding, which it is redeveloping with Mirvac into a 275-unit apartment complex.
The Naval & Military Club is the highest profile Victorian society to recently fail, after plans to redevelop its 27 Little Collins Street site were thwarted by the exclusive Melbourne Club next door.
NMC had 1100 members (average age, 63) when it closed in 2009, a quarter the number it had at its 1960s peak.
Email: marcpallisco@gmail.com
Twitter: @marcpallisco
