Landream reweights Melbourne CBD portfolio
Landream has purchased a permit-ready development site near the Queen Victoria Market and top tip of Melbourne’s CBD.
The deal for 100 Franklin Street with Burbank Group is worth c$30 million.
The vendor part occupied a c1891 five-level 2183 square metre renovated office on the block as its headquarters for some 15 years, and rented out the balance.
In 2017, it sought permission to replace the address with a 57-level tower containing 270 dwellings however, following planning changes, was approved for 22 floors and 84 apartments.
Colliers International’s Oliver Hay, Leon Ma, Daniel Wolman and Trent Hobart launched an expressions of interest sales campaign for the 1016 square metre parcel after Melbourne Cup Day; the guide was c$25m.
It sold seven days before Christmas.
Landream reweighting
Landream agreed to buy 100 Franklin St within weeks of banking $200m offloading another low-rise Melbourne CBD office, but with permission for a 55-storey tower.
The developer picked up that site, 600 Collins St, for $60m, in 2015.
It sold to Hines, which will replace the Zaha Hadid residential and apartment proposal with a c$1 billion office investment.
“We received an array of interest from multiple buyer profiles including retail owner-occupiers and large offshore developers,” Mr Hay said of the Franklin St campaign.
“The scarcity of quality commercial property in Melbourne has seen strong sale prices and high levels of demand become increasingly common despite the current pandemic,” the agent added, regarding the city sales market (story continues below).
Melbourne’s best growth pocket: agent
Built as a warehouse for stained glass maker Ferguson and Urie, 100 Franklin St has in recent years been known as Burbank House.
It abuts PDG’s Munro site – briefly and until recently public property – making way for a 38-level Build to Rent investment to be held by Mirvac.
Several of the city’s tallest residential skyscrapers are in this pocket amongst them, Aurora Melbourne, EQ Tower, MY80, The Empire Melbourne and Victoria One.
3L Alliance’s landmark Queens Place, with twin 80 storey structures, is also nearby.
Education entrepreneur Shesh Ghale early last year unveiled plans for an Accor hotel on the former City Mazda site at 400 William St, opposite Flagstaff Gardens.
Mirvac is behind an office in this area too – its 383 La Trobe St approved in May.
“This pocket of the CBD is fast becoming the most evolving precinct in Melbourne – from office workers, residents, tourists – the area will create a unique vibe between CBD towers and the suburban parklands,” Mr Ma said.
“This was such a unique opportunity – rarely do mixed-use DA approved CBD sites with such obvious locational upside come to the market”.
Burbank, controlled by Jarrod Sanfilippo, the son of Eddie who founded the company in 1983, has relocated.
Its 100 Franklin St permit allows for nearly 4000sqm of offices and ground floor retail.
