RACV pays Nationwide Towing & Transport founders $15m for Melbourne Impound Yard

RACV now owner occupies the Melbourne Impound Yard (marked), about two kilometres north east of the city.

The Royal Automobile Club of Victoria has paid the founders of Nationwide Towing & Transport $15 million for Collingwood’s Melbourne Impound Yard.

The pair have a relationship – in 2017 the motor club acquiring a 51 per cent stake in the towing business.

However, that agreement didn’t include some of the real estate occupied by the car storer, including 34-44 Cromwell Street, which was unsuccessfully marketed for sale in 2018 with a guide of $15m-plus.

An under-the-radar sale to RACV was subsequently struck seven months ago.

The 2016 square metre site is close to commercial projects proposed by Domain Hill Property Group, Peregrine Projects and Salta.

Earlier this week, we reported another local builder, Peter Hart, applied to replace a row of Peel St, Collingwood, properties with an eight level office (story continues below).

In May, DKO and Slab were approved to construct a commercial building rising the same height on a 468 sqm block at 19 Downs St.

The Melbourne Impound Yard property is zoned Commercial 2, so could be considered for an office, too.

When 34-44 Cromwell St was last campaigned, agents spruiked the potential for a Commercial 3 gazetting, which would have allowed 35pc of the floor area within any new project to be residential.

In separate recent deals for the vendors, four industrial properties leased to Nationwide, in Sydney, Melbourne, Gold Coast and Perth, sold to separate buyers for a speculated price of more than $14m.

After selling the majority stake in the Nationwide Towing & Transport business to RACV, the owners have sold it the Melbourne Impound Yard, for $15 million.
The 2016 square metre site has commercial development upside.

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Marc Pallisco

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