Developer swoops on Melbourne coffee roaster
A row of inner-city properties including one leased to coffee roaster, Seven Seeds, has sold for the second time in seven years.
Sydney developer Xiaoling Zha via W&Z Worldwide Pty Ltd is banking $11.5 million for the 661 square metre amalgamation covering 106-120 Berkeley Street, Carlton.
It paid $16m, settling just before COVID, with plans to build and retain a student accommodation complex on the Capital City 5 zoned block.
A scheme was obtained for a 13 level, 228-bed property with a gross floor area of 8195 sqm (and net lettable area of 5195 sqm), capitalising on the property’s 40 metre Berkeley St frontage.
Plus Architecture was the designer.
The incoming owner is a China based developer which transacted unconditionally at the close of the expressions of interest campaign mid last month.
Development at last
Seven Seeds occupies the largest property – 106-114 Berkeley St – on a lease expiring in 2028.
It presently pays $177,379 annual rent (continues below).
The agreement includes a demolition clause allowing the incoming owner to take occupancy next year.
Another investment, a dwelling built in 2005 at #116-118, returns $52,364 per annum.
The amalgamation also includes an office/showroom at #120.
Cushman & Wakefield’s Daniel Wolman and Oliver Hay with Savills’ Benson Zhou, Julian Heatherich and Andy Hu were the agents.
The deal comes four months since we reported the University of Melbourne purchased part of the ex-Myer dispatch complex across Berkeley and Barry streets, Carlton, to occupy.
That seller was the Chiodo family following an off-market campaign.
The school paid $34.1m.
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