Pellicano pays c$11 million for high-profile Fitzroy office

Builder Pellicano is paying a speculated $11 million for a low-rise office and retail building with significant redevelopment potential on Melbourne’s city fringe.

The property, 207 Victoria Parade, Fitzroy, is at the north-west corner of Smith Street – a T-intersection that acts as the suburb divide with Collingwood and East Melbourne.

Colliers International touted the potential “multiple outcomes for investors, owner-occupiers and developers” – in its promotion of the 860 square metre site, which is also on the cusp of the CBD.

Apartments, high-end townhouses, a hotel and major medical centre were proposed as possible uses.

An aerial image used in marketing showing the property in relation to the Melbourne CBD.

Pellicano is planning an office project which is expected to see a 1970s double-storey building currently onsite, razed.

The asset is across the road from McDonald’s equally humble national headquarters – which is zoned Collingwood.

Opposite both these sites, developer Time & Place recently launched a campaign seeking tenants for offices it is building at 200-202 Victoria Parade, East Melbourne, a site it bought from National Australia Bank in 2016.

Also in the vicinity, Mirvac and Freemasons Victoria are replacing the former Dallas Brooks Hall site, overlooking Treasury Gardens, with a high-end apartment project.

The property is across the road from McDonald’s national headquarters.

Colliers International’s David Walker said 207 Victoria Parade attracted 10 offers, and sold to Pellicano on a 45-day settlement.

He said the premiere corner site’s future as an office is “now secured”.

Mr Walker marketed the Fitzroy site with Daniel Wolman, Oliver Hay and Matthew Stagg.

Earlier this week, US-based Hines Group was paying $28.5 million for a 2120 sqm site at the south-eastern corner of Wellington Street and Northumberland Street, Collingwood. Hines is planning to build an environmentally friendly office on part of the site, which is currently a collection of low-rise warehouses.

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Marc Pallisco

Marc Pallisco

A freelance property writer and analyst, Marc is a co-founder of realestatesource.com.au.

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