Administrators For Allco’s Record Realty Should Reap $95M From Melbourne Offices

ADMINISTRATORS for failed property group Record Realty should make about $95 million from the sale of two Melbourne office buildings, expected to come onto the market for sale within weeks.
 
Sources expect Record Realty’s half share interest in the Harry Seidler designed 1 Spring Street office building to sell for about $65 million, the same price achieved for the second half of the building, which Lend Lease sold to Sydney’s Roth family three weeks ago.
 
Just last year, Record Realty was trying to sell its interest in 1 Spring Street for about $90 million.
 
In the city fringe, sources say Record Realty’s prominent 601 St Kilda Road office should sell for between $30 million to $35 million, in the current environment.
 
Since the start of the year several St Kilda Road office buildings have come on the market for sale, most of which remain unsold. 601 St Kilda Road may be considered more attractive, particularly to residential developer given it occupies a relatively large block corner block, and is unlikely to have CBD views built out, because of the Wesley College gardens across the road.
 
A representative from administrator KordaMentha was unavailable when contacted. Record Realty is an Allco Finance owned subsidiary. It went into administration last month with debts of $1.76 billion.

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Marc Pallisco

Marc Pallisco

A freelance property writer and analyst, Marc is a co-founder of realestatesource.com.au.

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