Nonda Katsalidis Sells Hero Apartments

Prominent Melbourne architect Nonda Katsalidis is cashing in on private investor demand for retail assets.

Sources say five retail shops at the Hero apartment building have exchanged for around $8.5million, with negotiations for the remaining properties expected to be finalised soon.

The shops are at the base of the apartment complex at 150 Little Collins Street, which Katsalidis converted from a B-grade office building into boutique apartments in 1999.

The development of prominent office buildings around Hero, including 120 Collins Street, SX1 and Council House II, has boosted the popularity of the small strip from retail tenants, which have been known to pay higher rents than in nearby Collins Street and Swanston Street.

CBRE selling agent Mark Wizel declined to comment on any part of the deal when contacted by Capital Gain.

Meanwhile in Kew a retail complex at 313 – 333 High Street Kew has sold for $14 million to a group of private investors, who are believed to be planning an office or residential development on the site.

There are currently 11 ground-floor shops and 11 first-floor residences on about 3500 square metres of land, including a 1500 square metre carpark. Tenants including Tabcorp, restaurants and takeaway shops bring in about $450,000 rent a year – meaning the property sold on a passing yield of about 5 per cent.

Agent Ross Mercorillo of NAI Melbourne said the strong sale price reflected the dramatic increase in Kew property values over the past year.

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