This article is from the Australian Property Journal archive
A PRIVATE investor has snapped up an island site in Hanover Street Fitzroy for $7.25 million in a Tender Sale conducted by Kliger Wood Real Estate.
Located at 60-70 Hanover Street, 2km from the Melbourne CBD, the property comprises a modern refurbished two level building, the buyer has plans to redevelop the property upon expiry of the current tenancies.
The building is leased until July 2011 at a current annual rental of approximately $405,000 and the property was considered a prime opportunity for an owner-occupier or as a development opportunity.
Kliger Wood’s selling agent Lou Montalti said that the tenant is Genetype Pty Ltd a pathology and medical services business who will be relocating when the existing lease concludes in July next year.
The land area is approximately 2,408 sqm while the collective street frontage exposure for a prominently located island site is over 230 metres. The refurbished building comprising two levels is utilised as modern offices, warehousing and as a medical laboratory and has gross building area of 2,600 sqm.
There is also on site car parking for 46 cars.
Montalti said the property received a strong tender response as island sites of this size within close proximity to the CBD are rarely on offer.
“The site is zoned predominantly Business 1 and part Residential 1 and alternative uses such as a multi level residential development could be formulated with the acquisition of appropriate permits.
“From a developers perspective there is the significant rental income stream while future plans are formulated.
“We were anticipating that tender offers would be in the region of $6.5 million so this is a strong result for a unique property,” he concluded.
Australian Property Journal
