LOCAL developers are believed to have paid about $20 million for an inner-city business park near the riverfront suburb border of Richmond and South Yarra.
Sources say prominent Richmond investors Michael Gannon and Gus Cooper have purchased the Maple Close complex, at 650 Church Street, from another private investor.
Currently configured as six low-rise buildings with a combined net lettable area of 6600 square metres, the complex is considered under-developed by today’s standards – especially seeing it has four street frontages
By comparison one of Richmond’s newest office buildings at 449 Punt Road, offers 6015 square metres of space, despite being on substantially smaller site than 650 Church Street.
Richmond’s tallest structures are high rise commission flat towers, although another residential skyscraper of about 20 levels is earmarked for the Viva Plastics site, abutting the Punt Road entrance of the Monash tollway.
CB Richard Ellis South Yarra selling agents Andrew Dawkins and Alex Zent marketed Maple Close but declined to comment when contacted by BusinessDay, as did the vendor and purchaser.
The asset returned about $1.1 million in annual rent, meaning it traded on a low yield of 5.5 per cent.
Sources say the developers also control the L.Arthur industrial site in Richmond, a former transport depot.
Church Street extends to become Chapel Street on the south side of the Yarra River, and is serviced by both a tram and a train station (East Richmond).