This article is from the Australian Property Journal archive
A CONVERTED warehouse office/showroom at 550 Swan Street has sold to Fortis for $13.6 million after being seized from Mark Oman’s Residence Company.
KordaMentha as Receivers and Managers Appointed, found a buyer for the second of two seized properties from Residence Company at a land rate of $8,192/sqm and a GFA rate of $4,900/sqm on the current building.
The Commercial 1 zoned 1,660sqm Richmond property on Melbourne’s city fringe is occupied by a two-level 2,758sqm GFA building with on-site parking and 40 metres of frontage to Swan Street.
Daniel Wolman, Hamish Burgess and Joe Kairouz from Cushman & Wakefield, alongside Jesse Radisich, Josh Rutman and Tim Carr from JLL, managed the sale via an expressions of interest campaign, which drew in more than 160 enquiries and eight offers from both local and interstate development groups.
The property has saw significant improvements on site under the previous ownership, though interest largely came from buyers looking to redevelop the site.
With the successful buyer Fortis, a wholly-owned subsidiary of Pallas Group, planning to develop the site to achieve a net saleable area of around 10,000sqm.
Current zoning and permissions allow for a preferred maximum building height of 28m within the Swan Street Activity Centre and protected northern view lines.
The $13.6 million transaction reflects a 3.5% gross passing yield or sub 2% return net.
For Fortis, the sale represents its latest commitment to Melbourne’s city fringe, the group was approved for two new mixed-use projects in Richmond last year with a combined end value of around $300 million.
This on top of its recently completed commercial development 65 Dover Street in Cremorne and its $50 million office project at 34 Eastern Road in South Melbourne.
