This article is from the Australian Property Journal archive
MICHAEL Renzella’s Hotel Claremont building in Melbourne’s South Yarra has sold to a local developer, with a permit for circa $50 million.
The property, located at 189 Toorak Road, includes a permit for a 906sqm 12-level luxury mixed use project, with four shops across 712sqm, 1,195sqm of office space, 57 residential apartments and 30 car parks.
Michael Ludski and Luke Bisset from Teska Carson managed the sale, for an undisclosed price, after fielding over 200 enquiries and six formal expressions of interests on the site which was initially marketed with expectations of a sale price in excess of $20 million.
“It very much represented an exceptional development prospect in a precinct and environs that has evolved into one of the most in-demand residential and office locations outside of the CBD,” said Ludski.
There are currently three tenancies at the property that bring in a combined annual income of $181,500, including a three-level 81 room Victorian Italianate hotel and two retail tenancies including Chemist Warehouse and Siricco.
“From a developer’s perspective the question was more about why you wouldn’t look at such an opportunity,” added Ludski.
While the leases will provide the developer with a holding income, they also include termination clauses.
“The property ticked many of the boxes for a development opportunity with a lot of the hard work already done, a very accessible site, and a very handy holding income, and then of course there’s the beautiful building and the location,” said Bisset.
The current building boasts ample site access with the corner site offering 85 metres of street frontage and also sits within a precinct with high quality retail and entertainment operators.
Located within South Yarra’s in demand Forrest Hill precinct, the Hotel Claremont is four kilometres outside the Melbourne CBD, and also offers easy access via public transport, including the $12 million South Yarra station upgrade.
“The market’s reaction – 200 plus enquiries and six EOIs – underscored the contention that this was one of the best inner city development opportunities to come to the market this year,” concluded Ludski.
