End of an era as developer secures Mercedes Toorak dealership

The Toorak site (outlined) is selling for $67 million with a two year settlement.

Orchard Piper is picking up the Mercedes Toorak dealership as a development play.

The deal with the family of late car broker John Worrell and his former business partner, Karl Hagen, is worth $67 million, or about 10 per cent over guide when the property hit the market in February.

Based on the annual net income ($721,543) the result would also reflect a 1.1pc yield – however, a two year settlement has been agreed.

CBRE’s Nathan MufaleDavid MintyScott Hawthorne and JJ Heng with Allard & Shelton’s Joseph Walton, Christian Hatzis, Michael Ryan and Patrick Barnes were the agents.

Orchard Piper is expected to replace the 3589 square metre Commercial 1 zoned holding covering 7-11a and 17-19 Carters Avenue, also with frontage to Ross Street, with a major mixed-use project.

Orchard Piper replenishes pipeline

Leased since 2014 to Nick Politis’ NPG Group – also considered a potential purchaser – the Toorak holding was amalgamated by the vendors and former occupiers since the early 1930s (story continues below).

The sale comes nine months since Orchard Piper, led by Luke McKie and Rick Gronow, outlaid $20m for a 1000 sqm parcel zoned for a seven storey complex at 424-426 Toorak Rd and 109 Mathoura Rd, in the suburb.

The group has also in recent years completed Toorak developments at Washington St, and two near the bottom of Mathoura Rd.

Last April the developer won permission to construct a $120m office, apartment and townhouses project on a 1200 sqm block at 364-370 Albert St, East Melbourne.

In 2017, the company made headlines razing a historic home in Armadale’s ritzy Huntingtower Rd, for a townhouse complex co-developed with the Besen family.

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Marc Pallisco

A former property analyst and print journalist, Marc is the publisher of realestatesource.com.au.