This article is from the Australian Property Journal archive
COMPETITION between big-name investors for adjoining freeholds in Melbourne’s Paris end has resulted with both assets in the possession of Rob Phillpot, co-founder of tech business Aconex.
Phillpot outbid the honorary consul to Monaco, Andrew Cannon, and the Melbourne Club on his way to acquiring the Little Collins St buildings under the hammer for a combined $22.35 million.
Auctioned first was the three-level, triple street fronted building at 39-41 Little Collins St, tenanted by Italian restaurant Lupino. It received 91 bids before selling for $16.5 million, with the price representing a sharp 1.16% yield and a 113% premium to the reserve.
The classically designed two-storey building at 37 Little Collins St, tenanted by Matt McConnell’s Bar Lourinha, drew 66 bids before being knocked down to Phillpot for $5.85 million, at a 2.20% yield and 67% premium to the reserve.
Phillpot and school friend Leigh Jasper co-founded construction management software business Aconex in 2000, which was sold to US tech major Oracle for $1.6 billion early last year.
Colliers marketed the Little Collins St buildings, offered to the market for the first time in almost 50 years by the Mathews family. The campaign saw more than 250 enquiries, 49 inspections and 52 contracts distributed.
The agents said interest was primarily driven by investors and future owner-occupiers desperate to secure an asset in the tightly held Paris end.
“With the favourable economic conditions, we are seeing countless active buyers and under-bidders from such campaigns eager to secure commercial assets that come to the market, particularly properties with rental upside and value-add opportunities within the Melbourne CBD grid,” they said.
