Cheltenham’s Arnos factory redevelopment complete
With the listing of three strata-titled commercial and retail assets, Goldfields Group and The Schachter Group are ready to check out a redevelopment of Cheltenham’s high profile former Arnos factory.
The leased investments – two ground floor shops an an upstairs office – are expected to sell for a total c$8.5 million, reflecting a 6-6.25 per cent yields.
They occupy the lower levels of The Village Cheltenham, an eight-level predominantly residential building with 177 dwellings.
The developers acquired the 4000 sqm site which made way for the project more than five years ago.
For decades prior, 1228 Nepean Highway was the headquarters of office product manufacturing supplier Arnos, which is now at nearby Keysborough.
Cheltenham building boom
This pocket of Cheltenham, near the Centre Dandenong and Charman road intersection, has seen major investment and development recently.
In 2010 Kingston City Council picked up the high-profile ex-Fujitsu office next door; it collects rent from parts it now doesn’t occupy.
At nearby 30 Munro St, ZLJ Properties recently launched a low-rise apartment project, Southbay.
In August, businessman Mark Economous sold an ex-Protestant Hall at 1261-1263 Nepean Hwy permit-ready for an eight storey residential project (but with the potential for the height to be increased five more floors).
Cheltenham is about 21 kilometres south of the city.
It is considered a municipality Major Activity Centre.
The state government’s Development Victoria, formerly known as Places Victoria, until recently earmarked a c$200m mixed-use village on a 1.56ha site in the suburb at 329 Bay Rd.
The Village Cheltenham assets
Melbourne Acquisitions is marketing The Village Cheltenham properties via auction and private sale.
Director Dominic Gibson said they offer depreciation benefits as well as long-term leases to quality occupiers.
The 999 sqm office includes 16 car parks; it is leased to FMC Mediation and Counselling for seven years. The occupier presently pays annual rent of $292,000.
Squires Loft rents one of the retail assets – its 474 sqm space collects $180,000 per annum.
An 80 sqm kiosk is the final property. Spreading 80 sqm it earns $36,000.
Ten months ago, Goldfields paid Fridcorp c$50 million for an office investment with development upside at 627 Chapel Street, South Yarra.
