Bourke Street Foundry Development Site to be Sold

Sure to whet the appetite of stock starved investors, The Foundry development on Bourke Street is expected to be put to the market this week, in a deal which could reap vendor Donnelly Group around $140 million.

According to industry sources, the asset will include a largely vacant 6200 square metre retail arcade on the footstep of the Bourke Street Mall, 92 apartments, a car park, and a podium, with permit, for a high rise office or residential building.

The sale is said to include the distinctive 90-year old John Danks & Son building at 399 Bourke Street, and a site behind at 368 Little Collins Street.

According to CityScope, the Donnelly Group bought the property, known for years around the industry as “the McEwans buildings” for $17.13 million in May 2003 off Hong Kong based PL (Nominees).

Donnelly Group director Stephen Donnelly declined to comment on any part of the speculation when contacted by Capital Gain. Jones Lang LaSalle director James Kaufman, who is believed to be marketing the project, also declined to comment.

The deal would be the third biggest in the CBD this year, and would follow the Myer retail buildings which CB Richard Ellis sold in June for $605 million, and the 222 Exhibition Street office building, which Colliers International sold in June for $162.5 million.

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• Dalgety House, Bourke Street, Close to Sale For $40 Million
• MAB to Sell Retail Property on the Bourke Street Mall
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