Reece snares bayside showroom site
Plumbing supplies giant Reece has bought an island site for $7.15 million – the previously reported sale price, three years ago.
The group is expected to develop and occupy a multi-level showroom/office at 344-360 St Kilda Road, St Kilda, between Inkerman and Carlisle streets.
With the deal, a permitted six storey apartment complex with 44 dwellings, is off the table.
That shell allows for 4743 square metres and underground car parking.
For years, the adjoining properties on 1370 sqm were occupied by rival Tradelink Plumping Supplies and SMR Advertising.
Including GST, Reece paid $7.865m.
The proposed building is speculated will complement a Cremorne headquarters opened last March.
The St Kilda property was publicised as trading for $7.9m in August, 2021, though records show a sale didn’t settle (story continues below).
Change of plan
Reece is expected to submit a planning application this year.
It outbid other developers following an off-market campaign; the result prices the Commercial 1 land at $5218 a sqm.
“This was a strategic off-market process in which we canvassed developers as well as special interest buyers, creating a very competitive campaign that ended with a strong result for the vendor in what has been an otherwise relatively subdued market over the past 18 months,” Fitzroys Mark Talbot and Tom Fisher.
“Rising construction costs and increasing holding costs such as financing and land tax were making conditions increasingly challenging for developers and our…targeting needed to reflect this,” he added
“The purchaser’s new offices will have excellent exposure to a large number of people every day and will offer an easily accessible and prominent flagship store location,” according to the executive.
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