Daniel Besen paying c$9 million for Fitzroy warehouse with development upside

The double storey Fitzroy office occupies an 899 square metre block.

EXCLUSIVE

Businessman Daniel Besen is paying the owners of hairdressing product supplier Turnley’s a speculated $9 million for a prominent office/warehouse with development upside in Fitzroy.

The asset, 1-9 Gertrude Street (pictured), near the north east corner of Nicholson Street and Royal Exhibition Building, was marketed to investors, owner occupiers and local and international developers – groups which all showed an interest, according to the selling agency.

Mr Besen is understood to have picked it up as a development play, but this could not be confirmed.

Turnley’s owner-occupied the nondescript double storey brick Fitzroy building as its headquarters since 1987. It paid $840,000.

The structure contains 1147 sqm of lettable area and sits on an 899 sqm plot walking distance to the Melbourne CBD and Melbourne Central train station, Queen Victoria Market, Carlton Gardens and Brunswick Street retail strip.

Gorman Commercial’s Tom Maule and Stephen Gorman marketed 1-9 Gertrude Street but declined to comment about buyer or price.

Of the campaign, however, the agents said “the property was arguably the most sought after asset we have sold in recent times”.

The property traded a week before the close of an expressions of interest campaign.

The sale of 1-9 Gertrude Street comes eight months after the former owners of suit hire business Spurlings offfloaded that company’s ex North Melbourne headquarters for a speculated price of more than $7 million.

In January, Australian Red Cross sold two recently vacated owner-occupied offices in Carlton to the University of Melbourne for a total $46 million.

Four months ago, Cotton On sold a Fairfield warehouse-dispatch-centre with a leaseback, for $3.6 million.

Daniel Besen no stranger to property pages

Mr Besen is no stranger to Melbourne’s property news pages.

Last year the businessman paid $19 million for historic South Yarra mansion, Two Birches.

That acquisition came a year after he sold his 29.5 hectare Flinders estate on the Mornington Peninsula to former Good Guys boss Andrew Muir for $17 million.

Also in 2017, Mr Besen was connected to a townhouse project which required the demolition of a historic home in Armadale’s ritzy Huntingtower Road.

In 2016, the executive traded an un-lived in home at 9 Towers Road, Toorak, for $26.25 million – a price which set a state record until Stonington in Malvern sold in February, 2018, for twice that.

Mr Besen’s parents, Marc and Eva, sometimes called retail royalty given their substantial property portfolio, are said have a net worth of more than $2 billion.

In 2017 we reported that GPT Group paid Marc Besen $680 million for the 25 per cent share of Maribyrnong’s Highpoint Shopping Centre which it didn’t own.

The Fitzroy site (outlined) relative to Carlton Gardens and the Melbourne CBD.

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Marc Pallisco

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

Marc Pallisco