Incore buys Stowe’s ex-South Melbourne HQ with 12-level office plan

Incore Developments is paying $6.42 million for a double storey South Melbourne office with plans for another, six times taller.

The 903 square metre Capital City 1 zoned property, 67-69 Buckhurst Street, was purchased from the owners of Stowe Australia, a business which occupied it for 16 years.

Stowe Australia’s new headquarters on 2043 square metres at 115-117 Salmon Street, Port Melbourne, cost its directors $7.285 million last July.

The electrical contractor recently relocated to a larger more modern Port Melbourne headquarters at 115-117 Salmon St.

Dixon Kestles’ Simon Regan was appointed mid-year to lease or sell the vacated building (outlined in image, top).

Despite the COVID-19 backdrop, the agent said, seven offers came in to buy it – “five of which were extremely strong”.

Incore is the property division of Symal Group; its portfolio includes residential and commercial buildings and fit-outs.

It is proposing a unique office at Buckhurst St, with a focus on sanctuary and wellness spaces and state-of-the-art technology.

Busy year for South Melbourne office proposals, deals

The Incore project will replace a brick office warehouse constructed by esteemed late builder Andor Schwartz in the 1980s (story continues below).

The office leasing campaign for 11 Eastern Road, South Melbourne, was launched this week.

Last week, the Appel family sold a three level commercial building on 493 sqm at 18 -22 Thomson St, South Melbourne, to Pallas Capital’s Fortis Development Group, for $6.9m.

The same buyer nine months earlier spent $8.6m on a similar asset covering a 592 sqm parcel at 67-69 Palmerston Crescent in the suburb.

Both properties are now earmarked for taller offices.

At 11 Eastern Road, ID&D owner Ivan Filipovic this week launched a leasing campaign for a nine-storey, 16,044 sqm investment he will start building speculatively later this year and complete by late 2022.

Hickory is also developing a workplace in the area; part of that five-floor, 10,200 sqm asset at 68 Clarke St to be occupied as its headquarters.

The owners of CR Kennedy recently completed a refurbishment of 171-183 Ferrars St – not far from Incore’s new site – and secured Ted’s Cameras and Minimax as occupiers.

Earlier this month Victorian planning minister Richard Wynne permitted a $1 billion-plus Gurner proposal with a 15-level 14,453 sqm office, as well as apartments, retail and a hotel, at a South Melbourne parcel opposite South Wharf.

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Marc Pallisco

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

Marc Pallisco