This article is from the Australian Property Journal archive
SOME $250 million worth of property has come to the market in the tiny Melbourne city fringe pocket of Cremorne, with local developer Roche Holdings putting up a seven-level office building for sale.
Encouraged by land rates as high as $13,500 per sqm seen in nearby sales this year, it is hoping for more than $40 million for 2-6 Gwynne Street.
The offering comes at the same time Alan Hamilton putting nearly a hectare of land once part of the Bryant & May match factory and then home to Hamilton Porsche to the market with expectations of more than $80 million. Meanwhile, Alfasi Group is offering a half stake in a $250 million A-grade tower at 510 Church Street that it speculatively developed and has almost entirely filled.
Colliers’ Peter Bremner, Rachael Clohesy and Alex Browne, in conjunction with Adrian Boutsakis and Luke Bisset of Teska Carson, are running an expressions of interest campaign for the recently completed building that closes 10th November.
Bremner said Melbourne’s metropolitan market is “starved of brand new trophy commercial assets below $50 million and there is considerable pent up demand from various buyer types in this price bracket”, as is anticipating interest from private investors, syndicates, institutions and offshore groups.
Nick Roche, director of Roche Holdings, said the family-owned company had numerous sites in the Cremorne area at various stages of planning approval.
“With several projects on the drawing board to be constructed and given 2-6 Gwynne Street is approaching fully leased status, the family felt the timing was right to sell this asset in a market starved of good quality investment offerings,” Roche said.
The Victorian government estimates Cremorne contributes $4 billion to the state’s economy each year. The location has attracted Domain, Seek, Uber, Tesla, Disney, and more recently Bunnings, among others, forming an offer alongside bigger neighbour Richmond of easy connectivity and lower rents than the tight CBD market.
Most of this Melbourne’s office market activity has taken place in the location. Charter Hall confirmed a pre-commitment with Australia Post at its $410 million 480 Church Street development in one of the first moves out of a CBD location for a multi-billion dollar tenant, and next door will be a $190 million speculative commercial development that will rise 13 stories and bring 17,000 sqm of commercial offices.
Fortis recently added a 1,850 sqm site in Cremorne to its development portfolio with plans for a new $130 million commercial building.
Elsewhere on the leasing side, 510 Church Street recently secured Monash IVF, NDIS and Dentsu, and co-workspace provider Hub Australia will open a new 3,000 sqm offering at Salta Properties and Abacus Property Group’s Industry Lanes development.
