Nick Theodossi and Ross Pelligra are paying $50.5 million for a major Fishermans Bend car yard with development upside.
The 1.8 hectare property, 99-109 Lorimer Street, Docklands, was offloaded by London-based Inchcape after 21 years.
It is best known as the Subaru Interactive dealership, though Citroën and Peugeot are also sold and serviced there.
Dawkins Occhiuto’s Andrew Dawkins and Walter Occhiuto brokered the off-market sale.
Inchcape, the world’s largest independent automotive retailer, trading from 30 countries, intends to develop other Melbourne dealerships with proceeds.
Mr Theodossi has previously rented a retail space to display – not sell – vehicles, at the base of a nearby Lorimer St apartment complex.
Next chapter for 99 Lorimer
Inchcape will vacate 99 Lorimer St in 2023 – at which point, Mr Theodossi, who recently sold his North Melbourne showroom, is likely to move into part of it.
The Capital 1 zoned Docklands property, also with frontage to Hartley and Boundary streets, contains two standalone buildings with a total 9000 sqm of area.
The north east corner of the site is fit out as a small hill to showcase Subaru’s All Wheel Drive feature.
There are also two car parks – one, spreading 4700 sqm, which the incoming owners have earmarked for the first new building.
Longer term, it is expected the whole block will be redeveloped with multi-storey towers – part of a “live, work and play” project.
Earlier this month Mirvac applied to replace what is presently a park across the road – 118-122 Lorimer St – with a residential skyscraper.
The pocket is about 1.5 kilometres south west of the CBD, near a proposed tram line which will connect Fishermans Bend to the CBD, crossing the Yarra River (story continues below).
In June the state government unveiled details of a multi-billion mixed-use commercial village set to replace the ex-GMH factory, not far from the Subaru Interactive site.
Car enthusiasts and real estate
In 2019, Pelligra Group picked up Ford’s former manufacturing plants, at Geelong and Campbellfield, with plans to replace them as industrial estates.
The developer also holds the ex-GMH car making plant, in Adelaide, which has already been converted to a business park.
Mr Theodossi also owns substantial commercial property product.
Early last year, he paid $50m for the Doncaster BMW site, east of the city.
In 2019, the businessman acquired a Bunnings backed investment in Mernda for more than $25m.
Three years earlier, the executive spent $24m on another warehouse rented to the hardware chain, in Eltham.
The existing Nick Theodossi Prestige Cars dealership at 185 Arden St, North Melbourne, is earmarked for a Build to Rent project after being snapped up by Grocon and GIC for $135m two years ago.
A collection of sites Mr Theodossi owned near to there – also on Arden St but on the west side of Laurens St – were recently proposed by Charter Hall for an office.
In late 2019, Sydney-based car dealer Nick Politis paid $11.2m for a Hawthorn East office, which it was speculated he might occupy longer term.
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