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KEW SALE A BRIGHT SPOT IN DEPRESSED OFFICE MARKET - THE AGE

Posted on 05 August 2023

A property investment syndicate has snapped up a trophy office building in one of Melbourne’s most affluent suburbs, in only the fourth major office deal in the city this year.

The 2286 square-metre building at 85-87 High Street, Kew – is believed to have fetched the asking price of between $17 million and $18 million. It sits on an 1840 square-metre site and came with planning approval for a 10-level, 118-unit apartment building, with three levels of parking and ground floor cafe.

A caveat on the property indicates a string of entities is behind the purchase. However, Gorman Allard Shelton’s Peter Bremner, Tom Maule and Jonathon McCormack, who marketed the property with Vinci Carbone agents Joseph Carbone and Frank Vinci, declined to provide further details.

The vendors paid $9 million for the property in 2013, effectively doubling their money in what is a very solid deal in a depressed office market.

Other major metro office deals this year include Harry the Hirer founder Rick Jamieson’s $30 million purchase of 112 Trenerry Crescent, Abbotsford, and the $19 million acquisition of 2-6 Southampton Crescent, Abbotsford, by self-storage outfit Howzit My China. Rick Jamieson’s son Sam is also stepping up his property activities.

Jamieson junior’s $25 million Fitzroy apartment project, at 227 Napier Street, was given the green light this week. His property development business JMSN bought the site in 2022 for $4.5 million, and has received approval for a 10-unit development designed by Warren and Mahoney.

The six-storey building will be inspired by the streetscapes of London and Paris, Jamieson said.

Fitzroy’s gritty industrial streets have been transformed with apartments, including No.227’s neighbours, Milieu’s 231 Napier Street and Whitlam Place and Dealcorp’s CF Row.

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