daVinci Advisers, Multiplex Developments Buy The Foundry Site For $87 Million

Japanese fund manager daVinci advisers this week confirmed it has purchased the large mixed use The Foundry complex at 399 Bourke Street, in a deal worth $87 million.

In a joint venture with Multiplex Developments, the new owners are reported to be considering a $620 million development of the site which is only about a hundred metres from the Bourke Street retail core.

It's believed the new owners will seek approval for a 63,000 square metre 43-level office building. The purchase also includes almost 6200 square metres of retail space, 92 developed apartments and a 192-bay car park.

A building at 405 Bourke Street will be demolished as part of the development.

daVinci Australian chief executive Peter Gribble told The Australian Financial Review it would consolidate two Foundry development sites into one, allowing it to construct an office building with larger floor plates of about 1760 square metres.

The Foundry was offloaded by private developer the Donnelly Group, and marketed by Jones Lang LaSalle. Other developers and fund managers reported to have inspected the project include Industry Superannuation Property Trust, Grocon, Fridcorp and private developer Morry Schwartz.

In August last year, daVinci paid $20.8 million to buy Sydney-based property fund manager, and developer, the Quantum Group. Weeks later, daVinci founder Osama “Sam” Kaneko announced plans to form a $350 million property investment fund which would own commercial property assets in Australia and Asia.

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