This article is from the Australian Property Journal archive
THE former headquarters of Carlton & United Breweries in Abbotsford, as well the adjoining land, have hit the market, representing a major value-add and development opportunity.
The Melbourne city fringe properties at 2-6 Southampton Crescent, 36 Bond Street and 27-29 Duke Street, are anticipated to bring in a sale price in the mid-$20 millions range.
Paul Burns and Chris James from Fitzroys have been appointed to manage the marketing of the properties in one line via an international expressions of interest campaign, on behalf of Hengyi Group.
“We’re expecting interest from value-add buyers, developers and owner-occupiers. The timing to secure this parcel couldn’t be more opportune,” said Burns.
2-6 Southampton Crescent comprises 6,048sqm of NLA with a partially refurbished 1928-built office/laboratory building, which is currently 28% leased to ASX-listed Starpharma.
“The balance of 2-6 Southampton Crescent can be occupied or refurbished and leased at rents that will be attractive to a growing contingent of office users seeking affordable, city fringe accommodation. The demand for this type of accommodation is expected to strongly rebound as cost-conscious tenants seek accommodation with flexible floor plates,” added Burns.
Starpharma has recently exercised its five-year option at the property, which has a gross passing income of $840,000.
“We are taking advantage of the lack in permitted sites by sending Southampton Crescent to market,” said Simon Manley, general manager of Hengyi Group.
The 3,099sqm parcel of adjoining land at Duke and Bong Street is currently occupied by leased warehouses with a VCAT permit approved for an additional 5,107sqm nine-level commercial development, with 129 carparks.
Potential purchasers will also be able to renew short or medium-term leases for the 36 Bond Street and 27-29 Duke Street warehouses.
“Abbotsford is one of Melbourne’s last city fringe suburbs with genuine unrealised development potential. The neighbouring Richmond and Cremorne markets have become ultra-competitive and Abbotsford is becoming highly-sought after by the large number of businesses looking for city fringe accommodation close to quality lifestyle amenity. This property offers a rare ready-to-go office development opportunity,” concluded Burns.
