Church sells another Melbourne asset
The Catholic Archdiocese of Melbourne has sold another asset – part of a broader sell-down amid its response to historical abuse claims.
The nine-level office at 228 Victoria Parade, East Melbourne, found favour with Shor Property + Development, the new investment and development vehicle backed by Square Peg Capital’s Justin Liberman, Moose Toys chairman Paul Solomon, Leaf Corporation’s Adam Rogers and ex-Teska Carson director Steve Fein.
Sources say the result is under $20 million.
The church paid $4.5m in 1996.
The office was also once owned by Local Authorities Superannuation, now part of Vision Super.
It was also known as James Goold House.
Cushman & Wakefield’s Daniel Wolman, Oliver Hay and Leon Ma were the agents.
James Goold House
On 1016 square metres zoned Commercial 1 near the corner of Lansdowne Street, the full office address 224-230 Victoria Pde.
It contains 5200 sqm – the south side capturing Fitzroy Gardens views over the heritage=-protected Mary MacKillop Heritage Centre – and 60 basement car parks accessed from Providence Lane.
The area is considered A-grade. The NABERS rating is 4.5-star. The church offered it with a leaseback expiring in January.
It was marketed for its development upside, able to accommodate residential.
A sell-down of floors after a strata titling is another option.
Even if rented as is, the buyers have likely bought at a high yield (based on the short-term rent offered by the church, the yield on this deal could be over 11 per cent).
In May realestatesource.com.au reported Shor bought its maiden asset – 11 Queens Road, opposite Albert Park Lake, as a development play (continues below).
Another sale
The deal comes 11 months since the Archdiocese sold 384-388 Albert St to Rino and Diana Grollo’s Australian Alpine Institute for $10.54m. The Grollos subsequently bought the adjoining 390 Albert St for $2.53m.
The church paid $13.3m for 384-388 Albert St in 2021.
The Archdiocese also sold 396 Albert St for $2.58m, 398 Albert St for $2.7m and 400 Albert St ($2.8m).
In February, a company controlled by 7-Eleven Australia heiress Deborah Barlow bought the adjoining 402-408 Albert St terraces for $11.36m.
Church consolidates
The Archdiocese said when 228 Victoria Parade was listed that it no longer served a purpose aligned with its current mission priorities, with proceeds to fund other Archdiocesan initiatives.
Functions undertaken at the office will be moved elsewhere in the St Patrick’s Cathedral precinct.
The disposals come as the Archdiocese continues to meet financial obligations arising from historical abuse claims, which were examined by the Yoorrook Justice Commission.
Another asset part of this sell-down is Brunswick’s Dom Bosco site, which includes a popular homeless shelter.
The Archdiocese holds about 350 sites containing 730 buildings.
The insured value is $3.3 billion.
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