Melbourne based Drapac has reaped $13.5 million from the sale of the former Collins Mitsubishi and Mercedes Benz dealership in Sturt Street, Southbank, to developer Les Smith.
The 3,878 square metre site, near the Victorian College of the Arts, is adjacent to Melbourne’s Arts precinct which includes the new $100 million Recital Hall.
Drapac managing director Michael Drapac said it purchased the site for $6 million in March 2005, at a time when other players in the market had an expectation that office vacancy rates were on the up, and Southbank apartment values were on the slide.
“We were bullish about the prospects for the market and purchased the mixed use site because it had reasonable short term holding income while providing a great redevelopment opportunity for commercial or residential use,” he added.
Mr Smith, also a racehorse owner, is expected to develop the site into offices and apartments.
CB Richard Ellis director Justin Clarkson negotiated the deal.