This article is from the Australian Property Journal archive
CHARTER Hall and Flagship Property Holdings have abandoned attempts to develop an office tower at 685 La Trobe St Docklands after selling the development site for $31.5 million.
Charter Hall and Flagship Property Holdings decided to move on from the project after trying to woo over office tenants for more than four years.
The partners missed out on several significant preleasing deals including Link Group (20,000 sqm), Metro Trains (7,577 sqm), Medibank, Maddocks (7,000 sqm), Viva Energy (4,400 sqm), KPMG (30,000 sqm), Marsh Mercer, Transurban, Commonwealth Bank, the Australian Taxation Office, Penguin Random House, Pearson, Sladen Legal and Mott McDonald, just to name a few.
The sale will see the joint venture partners each pocket $15.75 million.
The sale triples Charter Hall`s initial investment of $5 million when it bought a 50% share in the site in May 2011.
Charter Hall said the sale price represents a premium to the book value at 30 June 2015 and the proceeds will now be invested to generate operating earnings generated from property Investments.
The 4,411-sqm site is the last remaining development land parcel available in the Dockland`s stadium precinct.
The property was sold with development approval for a 12-level 35,000 sqm office building, although there is potential to readapt the plans for a high-density mixed use development (STCA).
Australian Property Journal
/* Style Definitions */
table.MsoNormalTable
{mso-style-name:”Table Normal”;
mso-tstyle-rowband-size:0;
mso-tstyle-colband-size:0;
mso-style-noshow:yes;
mso-style-priority:99;
mso-style-qformat:yes;
mso-style-parent:”;
mso-padding-alt:0cm 5.4pt 0cm 5.4pt;
mso-para-margin:0cm;
mso-para-margin-bottom:.0001pt;
mso-pagination:widow-orphan;
font-size:10.0pt;
font-family:”Times New Roman”,”serif”;
mso-fareast-language:EN-US;}
