Liquidators have called time on a Southbank development site that is back on the market for the third time in five years.
The project at 63-69 City Road, was to be the first Melbourne building for Jason Chong’s Malaysian-based Cornerstone Partners Group which had signed up UK hotel group Yotel.
Demolition had already started, with No.67 razed despite being listed as contributing to local heritage. No.63 still stands. The site covers 915 square metres.
Documents lodged with the Australian Securities and Investments Commission reveal Mr Chong’s Collins McPerson Australia bought the two properties in 2018 for $8.25 million each.
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Pitcher Partners, appointed on April 1, has produced a list of assets and debts which shows the property has a book value of $15 million but the company is $2.197 million in the red.
It owes $13.4 million to lenders and $641,000 to the State Revenue Office. Other creditors, owed $3.15 million, include lawyers, engineers, architects, designers and Yotel.
The property has been listed with JLL’s Josh Rutman who is quoting $13 million-plus.
Deeper into the CBD’s southern fringe, Ducati Melbourne’s Sydney-based owners Warren and Catherine Fraser are off-loading their South Melbourne premises.
The 767 sq m site at 150-158 Montague Street is in the Capital City zone and has development potential for up to eight storeys.
The expressions of interest campaign for the property closes on Thursday. Lemon Baxter agent Chris Curtain is handling the deal. It’s expected to sell for more than $5 million.
The property has a five-year lease to Ducati, returning $220,100 a year but Mr Curtain said the owners are prepared to leave early.
“It suits everyone. It’s appealing to owner-occupiers and developers,” he said.
Two properties in the eastern suburbs have hit the market after being held for decades by their owners.
After a substantial $2 million refurbishment and a futile search for a whole-building tenant, the owner of 268 Canterbury Road has opted to sell the expansive two-storey office building.
Colliers agents Peter Bremner, Ted Dwyer and Alex Browne are handling enquiries along with Gross Waddell ICR’s Andrew Greenway, Michael Gross and Andrew Waddell.
Mr Bremner said the closing date for expressions of interest has been pushed out to July 1 as this week’s lockdown will prevent any inspections.
“There are plenty of leasing options in Melbourne’s inner east, but very few options to buy a stand-alone freehold office building with no capex required,” Mr Greenway said.
The 1550 sq m office is on a large 1950 sq m piece of land near Maling and Union roads. It’s the first time it’s hit the market since 1987 and is expected to fetch more than $9.5 million.
In Hawthorn East, Teska Carson agents Luke Bisset and Larry Takis are selling a three-storey building at 12-16 Camberwell Road at the Burwood Road intersection.
Records show it’s on the market for the first time since 1995. The 220 sq m building is on a 1338 sq m site and is likely to sell for more than $8.5 million.
It comes with a new five-year lease to Fernwood Fitness. Downstairs is leased to Pabs Furniture. The site includes parking for up to 34 cars.
It returns $415,722 a year but that could be increased to $550,000.
Meanwhile, an 1146 sq m office building at 14 Church Street in Hawthorn, marketed by Mr Takis and Michael Taylor is understood to have sold for nearly $5 million.
Electricity provider CitiPower is selling a double-storey warehouse at 620 Little Bourke Street, next door to hip restaurant, Higher Ground, part of a former substation.
The 650 sq m warehouse is on a 598 sq m parcel of land on the corner of Cleve Lane.
With land at that end of the CBD fetching around $20,000 a sq m the final price is likely to be around $12 million.
CBRE agents Nathan Mufale, Alex Brierly, Jing Jun Heng and David Minty have the listing but declined to comment.
CitiPower is 49 per cent owned by listed Spark Infrastructure and 51 per cent owned by two Hong Kong-based companies which are part of Li Ka-shing’s Hutchison Whampoa.
Across the street, International architect O1A is selling its striking two-level office and double-car garage at 639 Little Bourke Street.
The 239 sq m office has been occupied by O1A for the past 15 years. O1A, founded by Omiros Emmanouilides in 1986, also has offices in Abu Dhabi and Delhi and does more work interstate and overseas than in Melbourne.
Savills agents Clinton Baxter, Jesse Radisich and Mark Stafford are handling enquiries and expect more than $3 million.
Mr Baxter said there was plenty of potential in the rare office-plus-garage property, including hospitality or retail down the track.
A North Melbourne property listed just as the city went into its second lockdown last July has finally changed hands.
Colliers agents Anthony Kirwan and George Davies have just sold 121 Arden Street, a 400 sq m office in the new Arden precinct, for $1.78 million on a 14 day settlement.
Documents show online property dealer BrickX has put a caveat on the property which is leased to APEX Homes Australia and Ausmed Australia until 2024.
Mr Davies said they received three offers, two of which were from future owner-occupiers even though it’s leased for another three years.
Closer to North Melbourne’s CBD fringe, the pair, along with Alexkarbon’s Alex Puglia, has sold another office at 30 Courtney Street for $4.25 million.
The 300 sq m two-level warehouse conversion is on 327 sq m of land, giving it a remarkable $14,200 sq m building rate and a land rate of $13,000 a sq m.
The former Chadstone Mitsubishi and Kia car yard in Hughesdale is on the market for the first time since 1985.
The 3881 sq m T-shaped parcel of land at 593 and 595-599 Neerim Road is near the intersection of Dandenong Road, just a shopping trolley’s drive away from the mammoth Chaddie shopping centre. It carries a price tag of around $8 million.
Aston Commercial’s Jeremy Gruzewski and Rodney King with Colliers’ Ted Dwyer and Hamish Burgess are handling expressions of interest closing on June 17.
The plot comes with a warehouse and a four-bedroom Edwardian house on the corner of Bletchley Road.
Car yards all over the suburbs are changing hands as their large land holdings become more valuable as development sites.
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