A two storey op-shop occupied over 20 years by the Red Cross has hit the market in the heart of Moonee Ponds’ Puckle Street.

Every retail investment listed in the precinct since COVID has sold.

Last month a Sigma Heath backed chemist on Pratt St – off Puckle, but also with retail – traded for c$1.21 million, or $17,000 per square metre.

Also, the Moonee Ponds Cinema – now four shops – at 9-15 Puckle St, exchanged for $5.2m.

Last September, the 146 sqm ground floor of 60 Puckle St sold for $1.78m – a 3.72 per cent net yield.

Emmetts’ Charles Emmett, James Rook and Geoff Emmett brokered that deal.

The same agents are marketing the op-shop, two doors up, at #64.

64 Puckle Street

64 Puckle St has been held 60 years.

It contains 221 sqm over two floors.

The site spans 181 sqm with rear access to Puckle Lane.

The not-for-profit nature of the tenant may enable a successful application for land tax exemption, Charles Emmett said.

“The asset is leased until December 2031 including options with annual three per cent rent rises,” he added (continues below).

Price expectations are $1.6m-plus ahead of an auction on August 13.

Heart of activity centre

Puckle St, connecting the Moonee Ponds train station to its bus interchange, about six kilometres north-west of town, has long been considered by state planners as a major metropolitan activity centre.

High profile tenants to move in since 2023 include Palace Cinemas, Brunetti Classico and Guzman y Gomez.

Earlier this year, McDonald’s opened in the street after a 30 year hiatus.

“Puckle St has consistently proven itself as one of Melbourne’s strongest metropolitan retail strips because it services a large and growing catchment while facing very little direct competition from other shopping precincts nearby,” Mr Emmett said.

“The combination of major national retailers, convenient parking and excellent public transport continues to underpin strong customer traffic and retailer demand,” he added.

“The precinct has been transformed in recent years by the Moonee Ponds Activity Centre Plan, which has driven substantial residential and commercial development….more than 2,200 apartments have been completed, with a further 1,800 or so planned, creating a much larger population within walking distance of the strip,” according to the executive.

“That growth is expected to continue, with forecasts pointing to significant increases in both population and employment over the coming decades.

“As that occurs, demand for retail and office space should strengthen further, supporting retailer performance and long-term rental growth along Puckle St”

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Plans for Australia’s tallest tower are off the table after part of the block it was earmarked for sold to a build-to-rent developer, speculated to be David Abramich.

Hanover House on 1515 square metres at 158 City Road, Southbank, cost c$26 million, sources say.

Beulah was the owner; it paid a speculated c$45m in 2021.

Lender La Trobe Financial triggered the sale.

KordaMentha is the receiver.

Cushman & Wakefield’s Daniel Wolman, Oliver Hay and Leon Ma with Stonebridge’s Julian White and Chao Zhang were the agents.

Five groups submitted offers, they said.

Tallest tower shelved

Hanover House and the neighbouring property – an ex-BMW dealership at 118 City Rd which Beulah bought for $101m in 2017 – were earmarked for a landmark 102 level tower.

Promoted as STH BNK, rising 365 metres, it would have been Australia’s tallest.

Beulah entered voluntary administration last year – the project unable to secure a revised funding structure (continues below).

Another receiver, Alvarez & Marsal, is representing another lender regarding 118 City Rd.

It is also for sale via the same agents.

STH BNK’s off-the-plan apartment buyers remain awaiting resolution over about $57m in deposits held on the proposed development.

BTR planned

Beulah bought Hanover House – for decades Southbank’s tallest building – approved for a 43-level tower with 449 dwellings, penned by Elenberg Fraser.

It later amended that to a 46-storey building with 27,302 sqm containing 406 dwellings and 212 above-ground car parks – a Cox design.

Were it amalgamated with 118 City Rd, it could have accommodated 63 floors.

The speculated purchaser is expected to utilise the approved development envelope while replacing the build-to-sell model with institutional housing.

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Nearly six years after Capital Alliance was appointed to redevelop five sites in central Dandenong, demolition works have begun on the first stage.

The Melbourne developer was selected by Development Victoria in to deliver the Revitalising Central Dandenong project across 1.9 hectares.

The first works, being carried out with Development Victoria, are at 91-93 Foster Street, where buildings are being razed.

The initial stage will deliver more than 300 apartments, about 12,000 square metres of retail space and about 350 car parks.

The retail component is expected to include a supermarket, food and beverage outlets and other commercial uses.

A renewed Little India precinct will also form part of the development.

Dandenong has for decades been marketed by agents and planners as ‘Melbourne’s second city’.

Construction finally begins

When it won the tender, managed by Colliers’ Robert Papaleo, Capital Alliance said it expected to start construction in 2023.

The state government approved a planning scheme amendment the following year,

Construction permits were issued four months ago.

Last week, temporary engineered fencing went up and tree protection zones were installed.

The first stage is slightly changed – Capital Alliance initially mooted c470 dwellings.

Stages 3 to 7 (Precincts 2 and 3) will add education, healthcare and a hotel with conference centre.

It will also contain an entertainment district.

Open spaces have been master-planned throughout (continues below).

The staged demolition works will include Thomas St shops during Stage 1, Foster St shops during Stage 2 and Mason St shops during Stage 3, a Capital Alliance statement said.

Revitalisation already happening

After more than five years pre-planning, RCD was unveiled in 2006.

Subsequent years were spent by Development Victoria and the City of Greater Dandenong amalgamating what were dozens of small sites to make way for ‘super-sites’ able to yield large scale development.

Some of these projects were delivered in private-public partnerships.

The government planners also improved amenity and connection from the Dandenong train station to Dandenong Plaza.

The Drum Theatre opened 20 years ago following the redevelopment of the former Dandenong Town Hall, creating a performing arts venue in the heart of the CBD.

Other major projects included the Stockmans Bridge redevelopment, the Dandenong Market upgrade and the Lonsdale Street boulevard works.

The Government Services Office, completed in 2011, the Dandenong Civic Centre and Harmony Square (2014) and the Australian Taxation Office building (2015), are others.

The Civic Centre precinct brought together council offices, a library and public square.

Also delivered to accompany the RCD initiative is a Quest Apartments complex, the multi-sport park and Salvation Army Community Hub.

The state government has committed $290m to the redevelopment.

Around $700m to date has been spent by the private sector expected to rise to over $1 billion once Capital Alliance is complete.

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The collapse of Abacus Bar & Kitchen has returned one of South Yarra’s larger hospitality venues to the leasing market.

The converted Westpac branch at 383-387 Chapel Street, on the south-west corner of Elizabeth St, opposite Prahran Market – with its 644 bay car park – is available immediately.

It contains 445 square metres over two floors; the ground level is 335 sqm.

There is the potential to create an upper trade deck or activate the rooftop to maximise trading capacity, Emmetts’ Charles Emmett, who is marketing the building with James Rook, said.

The site spans 510 sqm with five car parks, also exposed to Barry Lane.

Prominent building and corner

Abacus entered voluntary liquidation earlier this year after opening in 2017 (continues below).

It was established by Dylan Whitmore, who repurposed the banking chamber into a café, restaurant and bar while retaining much of the building’s original double-height interior.

Mr Emmett said Prahran Market – actually in South Yarra – attracts about 2.5 million visitors annually.

He added the existing fit-out would enable another hospitality operator to occupy the premises immediately, although alternative uses, including a showroom, could also be considered.

The property is a few blocks from the Jam Factory, which a Gurner-led consortium is redeveloping with apartments, offices a hotel and revamped retail.

Bill McNee’s Vicland also just bought a major block in the area – 402-416 Chapel St – with plans for a 12 level residential-based mixed-use project, while the Siriani family’s Yale Investment Group last year acquired the ex-Chapel Street Huts site at #430-438 with plans for an office.

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Three major convenience retail investments have changed hands in recent weeks for a combined $25.9 million.

In the priciest deal, the Shahin family’s Peregrine Corporation has sold an OTR/Viva Energy-backed service station at 306 Wianamatta Parkway, Ropes Crossing, in Sydney’s outer west (pictured, top).

The new asset, including a car wash and permitted to trade 24-hours, collected $12.06 million – a 5.7 per cent net passing yield.

The initial lease expires in 2041.

With options, OTR can stay until 2076.

CBRE’s Rick Jacobson, Raoul Holderhead, Sam Mercuri and Yosh Mendis were the agents.

The Shahin family sold the OTR operating business to Viva Energy for $1.15 billion in 2024, rising to about $1.22b after completion adjustments, but retained much of the underlying freehold property portfolio, from which it continues to selectively divest assets

Also today, realestatesource.com.au is reporting the family’s acquisition of Jumbuck’s 1.29 million hectare North West Pastoral Aggregation from the MacLachlan family.

Inner-city Adelaide servo

Meanwhile a BP at 80-94 Goodwood Road, Goodwood, opposite Royal Adelaide Showgrounds, has sold for $7.175m.

The three-year-old complex occupies 2630 sqm at the south-west corner of Leader Street (continues below).

The off-market result reflects a 5.17pc yield.

CBRE’s Rhyce Scott was the agent.

Goodwood is about two kilometres south-west of Adelaide’s CBD.

Corner Melbourne asset fetches $6.9m

In Melbourne’s Doreen, a United Petroleum-backed asset, also with a noodle bar and chicken shop, traded for $6.9m.

The relatively high yield – 6.7pc – reflects the short weighted average lease expiry of 1.73 years.

The 2820 sqm holding, 950 Bridge Inn Road on the south-west corner of Yan Yean Road, is zoned Mixed Use.

JLL’s Romanor Falconer and Dominic McGrath were the agents.

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Mirvac is in advanced negotiations to buy half-stakes in two Premium grade east coast CBD office towers.

The interests in Sydney’s 5 Martin Place (pictured, top), and 171 Collins Street, Melbourne, are understood to be worth over $630 million.

They are expected to be held by the Mirvac Wholesale Office Fund,

Cbus Property is the vendor.

Ray White Commercial’s Ian Hetherington is speculated to have brokered the off-market deals.

Ten weeks ago, realestatesource.com.au reported Cbus bought Brisbane’s Edison Telephone Exchange from Singapore-based Firmus Capital with plans for a Premium grade office.

Sydney, Melbourne assets

The Sydney office contains 33,860 square metres over 19 levels incorporating the restored c1916 11 storey Commonwealth Bank “Money Box” building; key tenants include Challenger and WeWork.

Cbus delivered the building in 2015 with Dexus which held its stake with the Canada Pension Plan Investment Board.

It secured full ownership in mid-2024, outlaying c$296.2m.

It is speculated to be on-selling for about that amount.

The Melbourne asset – with 33,128 sqm over 18 floors, incorporating the historic Mayfair Building – is occupied by, amongst others, Wood Group, for 6809 sqm, VicSuper (3139 sqm) and Evans Partners (1700 sqm).

GHD and McGrathNichol are smaller tenants.

BHP is the anchor for its global headquarters, leasing14,349 sqm until 2029.

Coincidentally, the ASX-listed resource giant’s Brisbane base also sold this week – for $700m.

Cbus and Charter Hall co-developed 171 Collins St in 2013; it was marketed as the first Premium grade office in the city’s ‘Paris end’ for two decades. There are also 136 car parks.

Charter Hall holds its stake in the Office Trust.

Mirvac reinvests in Melbourne

The deals would see Mirvac invest back in Melbourne after a month ago selling a St Kilda Road office on a corner double-block.

Paul Henley’s OneEast Capital was that buyer.

Also this month, Mirvac divested its stake in the former Reader’s Digest headquarters, in Sydney’s Ultimo.

It held that asset since 2017 with Perron Group.

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Kinglake Group has bought a Coles converted large-format-retail investment in Bass Coast’s largest town.

Anchored to Anglicare, with a Cheap as Chips, but a large vacancy, 88-98 Watt Street, Wonthaggi, was offered by a private investor which paid $8.08 million in 2004.

At the time it was occupied by the supermarket.

Near the corner of McBride St, a block from Graham, it is about 800 metres from Wonthaggi Plaza, where the replacement Coles is.

It is a little less than that to the town’s Woolworths.

The deal comes 18 months since realestatesource.com.au reported Bunnings Wonthaggi sold, for $22.5m.

The Bass Coast Shire population is about 45,000 people.

Another Wonthaggi deal

Kinglake is now converting a 1529 sqm vacant area into two retail tenancies, with Snap Fitness committed and leasing underway for a c729 sqm corner tenancy fronting Watt St.

The site also has 89 car parks.

The acquisition continues the expansion of Kinglake, which was established in 2023 and is led by Jamie Allen and James Teale.

The group has focused on large-format retail assets where leasing, refurbishment and tenant upgrades can unlock value (continues below).

Its recent purchases include the c$19.5m acquisition of 85 Vineyard Road, Sunbury, a 5550 sqm bulky goods centre anchored by The Good Guys, Petstock, Repco, Total Tools and Worklocker.

It also bought 36-38 Greenway Drive, Tweed Heads South, for $8.75m.

The 3600 sqm site includes an 1820sqm building leased to Clark Rubber, Weber BBQ and The Lighting Superstore.

Kinglake has also recycled capital from earlier acquisitions.

It sold a Supercheap Auto showroom at 1345-1349 Sydney Rd, Fawkner, for $5.45m after acquiring the property for $3.8m in August 2023.

The asset was refurbished before the sale and secured an eight-year lease to Super Retail Group.

The group also sold 72-74 Redland Bay Rd, Capalaba, for $13.5m after buying the Brisbane property for $9m early in 2024.

The deal followed a repositioning campaign that saw Repco commit to a new-generation MAX format store on a 10-year lease.

Wonthaggi is about 130 kilometres south-east of Melbourne and serves as the main service centre for Bass Coast, including nearby coastal communities such as Cape Paterson and Phillip Island.

The region is expected to benefit from more than $640m of government infrastructure investment, including the Wonthaggi North East Precinct Structure Plan, which is expected to guide about 5000 new homes and 6000 jobs over coming decades.

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Blackstone is considering introducing new investors into AirTrunk’s operating assets including a landmark facility in Melbourne.

With partner Canada Pension Plan Investment Board, the firm is understood to be preparing a Singapore-listed real estate investment trust backed by a portfolio of mature operating data centres.

The filing has been submitted confidentially.

The move would not involve a sale of AirTrunk; Blackstone is instead considering separating completed, income-producing data centres while retaining ownership of the platform and its development pipeline.

The news comes a week since realestatesource.com.au reported the data centre giant was buying a Mickleham, Melbourne, site with plans for a data centre campus.

That land cost c$350 million.

Asian capital

Blackstone bought AirTrunk in 2024, valuing the business at more than $24 billion – then the firm’s largest Asia Pacific investment.

The company was founded in 2015 by Robin Khuda, now chief executive officer.

The proposed Singapore listing would be notable given AirTrunk is headquartered in Sydney and has its origins in the Australian market.

Singapore has become a key venue for digital infrastructure investors, with a specialist investor base familiar with data centres and a number of listed vehicles focused on the sector (continues below).

The move also accesses Asian capital pools when demand for hyperscale data centres is booming driven by cloud computing and artificial intelligence investment.

Mr Khuda has been co-investing in property development via two companies, Onterra, which backs commercial and industrial, and Ondas, for residential.

What is expected

The vehicle is expected to include four assets – one in Australia, the MEL1 campus in Melbourne’s Derrimut, on Swann Drive.

Spanning 8.8 hectares, with more than 185 megawatts of capacity, it includes 32,000 square metres of technical data centre space – with 34 halls – and 12,600 sqm of offices and storage, backed by high-voltage 66kV power feeds.

The other facilities are in Hong Kong, Japan and Singapore.

The float is tipped to raise about $2.3b (US$1.5b), valuing the initial portfolio at up to $6.7b (US$4.4b).

Blackstone and CPPIB are expected to retain about 50 per cent of the trust while continuing to manage the assets.

Investor marketing commenced through Citi, DBS and Jefferies, sources say, ahead of a September pricing and October listing.

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A collection of new venues is replacing the former King & Godfree format under owner Jamie Valmorbida.

Today, Karen Martini opened Delmonte, an Italian restaurant and wine room, at 293-297 Lygon Street, on the north-west corner of Faraday, in Carlton.

It replaces the former deli space.

The opening comes five months since Garfield Pizzeria launched at the site – the first venue introduced as part of the repositioning.

A basement level cocktail bar is also planned.

Next chapter for historic building

The heritage-listed c1871 Lygon St building has for more than a century been used for hospitality; King & Godfree opened there in 1884 (continues below).

It became an important part of Melbourne’s Italian community after Carlo Valmorbida, Jamie’s grandfather, took over the business in 1955; the store became a destination for Italian produce – the family retaining ownership through subsequent generations.

Jamie led a major refurbishment, reopening in 2018 with a new configuration including an Italian deli and grocer, espresso bar, rooftop bar, Johnny’s Green Room, and other hospitality uses.

Ms Martini became culinary director of that King & Godfree operation.

That format later closed; the multi-concept model replaced with introducing new venues while retaining the building’s Italian identity.

Delmonte takes its name from the Italian phrase meaning “from the mountain”, referencing Mr Valmorbida’s grandfather Carlo, who was born in Valli del Pasubio in northern Italy before moving to Australia.

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The commercial healthcare component at the new Footscray Hospital is nearing full occupancy.

Imaging Associates is the latest group to sign up – for 1100 square metres, for an initial 15 years.

The radiology provider will join, amongst other businesses, Parkwood Green which leased 800 sqm in December for a GP Super Clinic.

It will be the outfit’s 17 Victorian facility; it also operates in Box Hill, Carlton, Camberwell, Richmond and Rowville. It opened a practice last month at Doncaster East.

Imaging Associates also trades in New South Wales including two facilities at Wagga Wagga.

“Interest in medical precincts continues to grow,” CBRE’s Kai Wang, who is leasing the Footscray Hospital space with Sandro Peluso, said.

“With over 85 per cent of the lettable healthcare component already committed, many groups highlighted the value of co-locating with other high-quality operators and a major public hospital,” he added.

Established by radiologists in 2008, Imaging Associates has for five years been majority owned by Advent Partners (continues below).

Footscray Hospital fills

Delivered under a public-private partnership between the state government, Western Health and a consortium led by Plenary Health, the $1.5 billion Footscray Hospital opened to patients in February.

It is one of Victoria’s largest health infrastructure projects, replacing a Gordon Street facility in the hands of Places Victoria to repurpose for housing.

With 198 more beds, the new hospital can treat an additional 15,000 patients and 20,000 emergency department presentations annually.

The clinic Imaging Associates is moving into is expected to open near the end of the year, offering, amongst other services, PET, MRI, CT, ultrasound and mammography.

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