This article is from the Australian Property Journal archive
NEARLY $140 million worth of real estate in Collingwood is being shopped around, with Australian Unity’s Healthcare Property Trust joining the owners that have tipped their assets to the market – creating the opportunity to acquire a nearly one-hectare corner block in the Melbourne CBD fringe locale.
Australian Unity has put up for sale a three-level, 5,891 sqm laboratory occupied by ASX-listed Sonic Healthcare, operating as Melbourne Pathology, which is on 4,069 sqm of land with commercial 1 zoning. That allows for mixed-use development of up to 12 levels, or 40 metres.
Selling agents Colliers told Australian Property Journal that the site is expected to sell for more than $60 million.
Australian Unity paid $45 million for the asset in June of 2016.
The offering of 103 Victoria Parade comes just a couple of weeks after Henkell Brothers hung up the for sale sign at Jetstar’s 7,222 sqm headquarters next door, on 5,241 sqm at 79-81 Victoria Parade, with expectations north of $65 million.
The side-by-side offerings mean a determined buyer could snap up the pair and own a 9,310 sqm corner site, in a suburb that has seen rapid gentrification in recent years through a number of residential developments, joined by a growing office market, and located close to the MCG and East Melbourne parklands.
The Qantas-owned budget airline has three years left on its lease, while Sonic Healthcare’s tenancy at number 103 expires in 2028.
Colliers’ John Marasco, who has the listing with Anna Cavar and Ian Sanders, said 103 Victoria Parade presents a “unique investment opportunity due to its strategic location, secure income stream, and substantial future development potential”.
The site is also positioned close to major healthcare and education facilities, including Epworth Freemasons Hospital, St Vincent’s Private Hospital, and the Australian Catholic University.
Expressions of interest close 12th September.
Elsewhere in the suburb, in a reflection of its changing nature, a longstanding local rag trader has tipped their 811 sqm Cambridge Street site to the market, which could fetch upwards of $11 million.
The owner and current occupier, M.Recht Accessories, a garment supplier, distributor and wholesaler of fashion accessories, has operated from the property for over 50 years.
The 53-57 Cambridge Street property is currently improved by a two-level showroom, office and warehouse with 10 undercover car parks, and has frontages to Cambridge, Derby and Langridge streets totalling 85 metres.
Daniel Wolman, Raphael Favas, Hamish Burgess and Leon Ma of Cushman & Wakefield have the listing, and anticipate strong interest in the property from developers given the “undeniable upward pressure on residential revenues in Melbourne’s city fringe apartment market”.
The expressions of interest campaign also closes on September 12th.
“Melbourne’s city fringe is experiencing unprecedented demand as developers are looking to confined pockets of Melbourne where development remains viable. Given a lack of supply leading to an ability to offset construction and finance cost increases through strong sale revenues, areas such as Collingwood and Fitzroy are highly sought after,” Burgess said.
