Wednesday , April 21 2021
Home / Business / Tunnel builders take up tower space

Tunnel builders take up tower space

Foundry office

Developer Fortis has signed up Woolworths as the anchor tenant of its $300 million Foundry office development in Clifton Hill.

The deal comes as the Victorian Civil and Appeals Tribunal finishes hearing local objections to the project, many of them based on concerns about increased local traffic.

Fortis secures Woolworths anchor tenancy at The Foundry.

Fortis secures Woolworths anchor tenancy at The Foundry.Credit:

Woolworths will open a 3300 sq m full line supermarket and a BWS on the ground floor.

Fortis, the development arm of Sydney-based lender Pallas Capital, acquired the site in early 2020 for $32 million, buying up several properties that had been compulsorily acquired by the state government for the aborted East West Link.

Fortis has cut back its aspirations for the site on the corner of Smith Street and Alexandra Parade, reducing the taller of the two buildings to 10 levels from 12 and shrinking the office space by 30 per cent to 16,111 sq m.

It’s across the road from the Development Victoria’s 3.9 hectare Fitzroy Gasworks project where remediation work has been under way for about 18 months.

Development Victoria is planning 1100 apartments, 4300 sq m of retail, a new high school campus and a sports centre.

Golden breed

The home of iconic surfwear brand Golden Breed is up for auction next month.

The Golden Breed showroom at 45 Porter Street still carries the famous logo, despite the ragtraders selling the factory nearly 10 years ago.

It has since been converted into office space by the vendor, who runs the Instinct Music booking agency out of the space. Instinct’s Rich Sayer said the historic Golden Breed branding attracted plenty of photographers and had so far kept the graffiti taggers at bay.

The booking agency will stay on as a tenant for the time being but Mr Sayer said the capital would go into rebuilding his Healesville home, which was burnt out in the Black Saturday fires.

The 220 sq m office is on a 390 sq m parcel of land on the railway line and has rear access to Hinton Lane.

It goes to auction on May 7 through Gross Waddell ICR agents Andrew Greenway and Andrew Waddell and is expected to fetch more than $3 million.

Parkside place

Luxury apartment builder Orchard Piper has emerged as the developer on a new East Melbourne project facing the Fitzroy Gardens.

Orchard Piper will develop a new East Melbourne project facing the Fitzroy Gardens.

Orchard Piper will develop a new East Melbourne project facing the Fitzroy Gardens.Credit:

Orchard Piper directors Luke McKie and Rick Gronow embarked on a joint venture some years ago with Harold Handelsman’s Sun Valley Constructions, the owner of the 1200 sq m site, and finally received a permit last week.

The site at 364-370 Albert Street includes two period homes, which will be kept as part of the nine-storey development. The three-storey Victorian terrace will be renovated and offered as a townhouse.

The $120 million project involves a further 13 large house-sized apartments across six levels and two floors of offices.

There will be no more than three storeys on each floor and the offices will likely be offered first to buyers of the upstairs apartments, the directors said.

“We’ve had pointed demand for product in East Melbourne for years,” Mr McKie said.

“But we haven’t had a site that was good enough. This is as good as it gets,” Mr Gronow said.

Jolson Architecture is designing the project, which was approved after a VCAT hearing and objections from a raft of developers building towers in the prestigious neighbourhood, including Time & Place, Golden Age, and new Sydney-based entrant Luxcon.

It’s a big step up for Orchard Piper, which previously built smaller boutique projects on the South Yarra-Toorak-Armadale spine.

Mr McKie said they had bought three sites over the past year giving them a $450 million pipeline.

Doreen childcare

Procon Developments has sold a Doreen childcare centre for $7.37 million on a sharp 4.9 per cent yield.

CBRE agent Sandro Peluso, who handled the transaction with Josh Twelftree, Jimmy Tat and Marcello Caspani-Muto, sold it via a boardroom auction with five bidders last week.

Mr Peluso said bidders were allowed into the auction if they accepted the reserve of $6.8 million and paid a refundable $50,000 deposit.

The 1 Whitford Way centre, leased to Story House, was the third childcare centre to sell this year. Ringwood and Essendon facilities sold on yields around 5.4 per cent.

The brand new Story House centre started trading in February with a 20-year lease in place. It’s on a 3200 sq m parcel of land.

Kew traffic

The owners of a Kew development site have flipped their 1259 sq m corner landholding at a 50 per cent premium three years after buying at the top of the market.

Records show the 365 Cotham Road site – opposite Kew Traffic School – sold in early 2018 for $3.6 million to a small developer, LNYL.

The site is understood to have fetched $5.4 million after obtaining a permit for 14 apartments designed by Ewert Leaf Architects.

Stonebridge Property Group’s agents Chao Zhang and Julian White negotiated the deal but declined to confirm the price.

Mr White said the sale process was highly competitive with a local bidder beating four others.

“Given the limited supply over the past 12 months, there is clearly pent-up market demand for good quality apartment sites, ” he said.

Stonebridge is now marketing another Kew property with a permit for 14 apartments and retail and office space at 142-146 High Street.

Most Viewed in Business

Loading

About admin

Check Also

ASX set to dive back below 7000; Iron ore surges

The boom Netflix enjoyed during the pandemic came to a dramatic halt overnight when dismal …