Owner-occupier spends $10 million on Richmond showroom

An aerial image showing the site (outlined) relative to the Burnley train station and Melbourne CBD.


A showroom/warehouse in Richmond’s Swan Street has sold for $10 million following a campaign which attracted six offers.

The property, 488-490 Swan Street, includes a 925 square metre building leased until next September to Austral Bricks, which pays annual rent of $185,657 plus outgoings and land tax.

The land area is 1165 square metres, zoned to allow for the construction of a 10-level commercial building.

An owner occupier acquired the 1165 square metre site with a 925 sqm showroom/warehouse.

However, a proposed amendment to the Yarra Planning Scheme (Amendment C191) could see it gazetted Commercial 1.

A Commercial 1 rezoning would allow the site, three kilometres east of the Melbourne CBD, to be replaced with a residential development.

Marketing agent Matt Hoath, director of Gray Johnson, said an owner-occupier secured 488-490 Swan Street, Richmond, over investors and builders.

The sale price values the land at about $8800 per square metre.

The property sold for about $1 million over initial price expectations.

Mr Hoath said the site was the highest profile offering in the immediate area along Swan Street – “a strip that has undergone significant revitalisation including the Zagame Prestige European car complex, the arrival of major bulky goods retailer Winning Appliances and several large-scale residential projects”.

“We nominated a price expectation for the sale of this important holding of in excess of $9 million,” the agent said. “To see the expressions of interest so well supported and with such an immediate sale result is professionally pleasing”.

Mr Hoath represented the vendor, a private family who held 488-490 Swan Street, Richmond, since the 1970s.

Elsewhere on Swan Street, Richmond

Last month we reported a C-shaped, 5433 sqm supersite including 362-368, 382-386 and 388-390 Swan Street, Richmond, was being offered for redevelopment.

These properties include the Zagame Prestige European car complex Mr Hoath mentioned as a a part of Swan Street’s reinvention.

In May, we reported that Riverlee and Bamfa plan to build a 13-storey, 17,000 sqm office on a 1163 sqm plot at 484 Swan Street, Richmond. Between 2000 and 2009, a low-rise office at this site was part owner-occupied former premier by Jeff Kennett.

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Marc Pallisco

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