Mario Salvo’s Salvest Capital Pays $15 Million For 128 Exhibition Street, Melbourne

Mr Salvo, a former motor mechanic, is most recognised in property circles for his role directing First Delta Group, which develops major inner-city apartment buildings.
 
Salvest Capital is a separate entity to FDG, specifically targeting strategies that have appeared due to the recent economic downturn. The company plans to invest in large capital city office and commercial markets.
 
Chief executive officer Mr Bowman declined to comment about a deal at 128 Exhibition Street when contacted by BusinessDay. An AMP Capital Investors spokesman was unavailable.
 
Colliers International marketing agent Matt Stagg also refused to disclose specific details of the deal, but did say the Melbourne CBD is considered the best placed Australian capital city to benefit from the anticipated recovery of the commercial property market.
 
“There are a number of off-market transactions currently being negotiated throughout the Melbourne CBD by investors seeking to secure a position for the next cycle of rental and capital growth.”
 
According to the Property Council of Australia, office vacancy levels in the precinct defined as the Eastern Core – where 128 Exhibition Street is located – is a low 2.8 per cent.
 
Since AMP purchased 128 Exhibition Street almost ten years ago, development activity in the precinct has been rampant.
 
The biggest development is of two major office buildings across the road, part of the Multiplex’s SX development, which is being developed on the former Southern Cross Hotel site. A hotel is also under construction next door to SX at 135 Bourke Street, while plans are afoot to redevelop apartments behind the historic Windsor Hotel, on nearby Spring Street.

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Marc Pallisco

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

Marc Pallisco

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