Bill McNee buys Jam Factory car park for $12.6 million off-market

The Jam Factory shopping and entertainment complex in Chapel Street, South Yarra.

Newmark Capital has sold a multi-level car park abutting its Jam Factory shopping centre in South Yarra (pictured, left) to local developer Bill McNee, director of Vicland Property Group, for $12.6 million.

The property, 11-13 Wilson Street, spreads a site of 1125 square metres.

It is proposed to make way for a mid-rise, 10,000 sqm commercial building containing about 7500 sqm of high-end office space.

If approved by the local council, Vicland plans to occupy part of this office as its headquarters.

The off-market deal was negotiated by Colliers International broker Daniel Wolman who declined to comment about the sale details when contacted. Vicland also declined to comment.

South Yarra, along with inner sub-markets including South Melbourne and Cremorne, command amongst the highest office rents outside of the CBD.

Given a shortage of supply, existing offices in the suburb are known to lease for about $600 per sqm, per annum.

New offices – of which there have been few developed in South Yarra over recent years – can feasibly expect to let for in excess of $650 per sqm, per annum, local leasing agents say.

As we reported three weeks ago, this office complex and public space is approved to be built over South Yarra train tracks.

The Wilson Street application comes three weeks after we reported Bill McNee is planning to build another office, on airspace above rail lines opposite the South Yarra train station – a site known as 162 and 164 Toorak Road (artist’s impression, right).

In 2016, Mr McNee sold what was dubbed “Australia’s best office” – built on airspace above the same train line, but on Chapel Street.

Last month, Newmark Capital sold another car park abutting the Jam Factory: 14-16 Garden Street, on 338 sqm of land, traded to a Malaysian apartment builder for $3.8 million.

The boutique property syndicate acquired 14-16 Garden Street and 11-13 Wilson Street as part of the $165 million purchase of the Jam Factory in 2016.

Earlier this year Newmark Capital won planning permission for a $1.25 billion refurbishment and extension of that shopping centre. It plans to build about 50,000 sqm of office space within four new towers, the tallest rising 15 storeys. Its permit also allows for a three-level retail, dining and entertainment podium.

Newmark Capital was established in 2011 by former AFL sportsman Chris Langford with business partner, Simon T Morris.

In April the company paid Vicinity Centres $135 million for the Brandon Park shopping centre in Melbourne’s south-east suburb of Wheelers Hill.

Newmark Capital’s portfolio also includes the Como Centre, in South Yarra. It purchased this property, an office and hotel, for $236.5 million in 2016.

Marc Pallisco

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

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