Perri Projects is paying $15.65 million for adjoining Fishermans Bend office/warehouses.
On a 7377 square metre Capital 1 zoned site, the property, 359 Plummer Street, Port Melbourne, has significant mixed-use development upside.
For the moment, Perri intends to upgrade the existing buildings to create a business park.
The deal comes four months since the Melbourne developer, in partnership with Wingate, unveiled plans to replace a historic West Melbourne flour mill as a 14,000 sqm last mile logistics estate.
In June we reported Perri offloaded a CBD development site – 23-29 Victoria St – to student accommodation provider Scape for $32.5m or nearly $20m over the price it paid in 2017.
Lemon Baxter’s Paul O’Sullivan and Ben Hackworthy marketed 359 Plummer St; based on the fully let income, the result reflects a 4.9 per cent yield.
Elsewhere in the pocket, last month, Goodman paid $40m for a 1.42ha warehouse abutting its Port Melbourne Industrial Estate.
Not long earlier, Bensons Property Group sold a waterfront office/warehouse on 1.69ha to Germany’s Institutional Investment Group (2IG) for c$100m (story continues below).
Potential for two towers
In the area’s Wirraway precinct – a 12 storey project could be developed on the front of 359 Plummer St, where there is presently a vacant, 4481 sqm two level building.
The rear could accommodate a tower twice that height; at the moment it contains a 2456 sqm structure subject to a long-term lease
Fishermans Bend is Australia’s largest urban renewal precinct.
In June, the state government committed an initial $179.4m to develop the ex-General Motors Holden site as an innovation precinct.
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