Regis founder bulks up in Richmond
EXCLUSIVE
Brian Dorman has quietly paid $45.5 million for a Richmond investment next to another he purchased seven years ago.
With the deal for 362-368 Swan Street (pictured, top), the Regis Healthcare co-founder, who nowadays runs Dorman Capital, controls 5238 square metres on the road.
The result is a boon for the vendor, the Anassis family, of Richmond Oyster Bar fame, which initially sold it and a neighbouring property, 382-384 Swan St, on 2364 sqm, in February, 2020, for $59m to a local developer – a deal which later fell through given COVID.
That transaction priced the land at $10,801 per sqm.
Mr Dorman by comparison outlaid $14,687.
TCI’s Jack Teneketzis brokered the deal.
Income, development upside
The acquisition of 362-388 Swan St, on 3103 sqm, gives Mr Dorman another income producing asset – the property is leased until 2026 to Zagame Prestige Automotive, which pays over $520,000 per annum, and Telstra, which maintains a communications tower on the roof.
The executive also derives revenue from the two level neighbouring office he purchased at auction in December, 2015, 370—380 Swan St, for $18.2m or $8461 per sqm of land (story continues below).
Both properties benefited from recent planning changes amending the zoning to Commercial 1 – which would allow residential.
Local values are also set to balloon given the announcement in 2021 that Australia Post will relocate its headquarters to a 12 level office now under construction at the south east corner of Swan and Burnley streets.
“The Dorman family have acquired this neighbouring property, which allowed their existing holding to reach the rear uninterrupted and add significant value,” Mr Teneketzis said.
“They now have an exceptional site in one of Melbourne’s best locations,” he added.
Elsewhere in Swan St, Richmond, adjoining properties once owned by ex-footballer Wayne Carey, and a neighbouring site – all up covering 1313 sqm – hit the market in January with c$15m-plus price hopes.
Sydney based developer Fortis is also intending two major mixed use buildings on Brighton St, a small road running off Swan, terminating at the train line.
Last week we reported Salta Properties and Vicinity Centres had earmarked several apartment towers at the Victoria Gardens shopping centre, on Burnley St, which turns 20 next month.
Goldfields is also planning a 12 storey hotel with a rooftop pool on an ex-Matt Blatt Furniture showroom at 587-593 Church St.
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