Pace Development Group has reweighted its portfolio – buying and selling properties in Melbourne’s south.
In the outer suburbs, the group has picked up the former Frankston Village cinema on 3284 square metres at 438-444 Nepean Highway, with plans for 200 apartments in a c$150 million U-shaped complex.
Abutting Kananook Creek, any west facing units would have unobstructed water views.
Pace, which is more familiar with developing in the inner and middle ring suburbs, said it expects the Frankston project to work because of a lack of supply.
“We’re confident we will get over $10,000 per sqm, upwards of $15,000 a sqm,” Ashley Bramich, a director with the developer, told the AFR which is reporting the deal.
The property previously sold in 2017 when it was returning $1.07m per annum and offered a permit to be converted into a 120-place childcare centre (story continues below).
St Kilda HQ sold
Meanwhile closer to town, Pace has sold its St Kilda headquarters (pictured, top) for $4.2m with a leaseback.
The full floor space, 2/201 Fitzroy Street, contains 802 sqm which was marketed for its potential to be subdivided. The area has unobstructed Albert Park Lake views, about six kilometres from the city.
Nichols Crowder’s Julian Vautin and Matt Nichols said the property sold just before Christmas, despite a campaign hampered by two lockdowns. The result, they added, reflects a 6.2 per cent net yield.
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