Ron Hall, the founder of retail outfits The Reject Shop and Going Going Gone, has sold two neighbouring properties in Melbourne’s inner-east suburb of Richmond, to a consortium of local developers, Pelligra Group and ResiCommercial, for a speculated price in excess of $25 million.
The portfolio – a low-rise office and warehouse at 471-479 Swan Street and an open-air car park at 10 Belgravia Street, a site separated from the commercial structure by a laneway, cover a total of 3025 square metres of land.
The properties were listed for sale four months ago.
Until June 2022, the office component of 471-479 Burnley Street is leased to ASX-listed Pacific Star Network, which runs SEN Radio, responsible for easy listening network 3MP. Mr Hall is a Pacific Star Non-Executive director.
Combined the portfolio was advertised as returning a net rent of $550,064 per annum and would therefore be selling on a yield circling 2 per cent.
However, the return on investment would not appear to be a major concern for the incoming owners who plan to build a “landmark” and “globally recognised” mixed-use project containing shops and apartments.
An international design competition has commenced seeking an architect and interior fit-out team ready to pen the “iconic project”.
The holding has 68 metres of frontage to Swan Street and is 93 metres from the Burnley train station.
In the immediate vicinity, four separate towers have been permitted for development, set to rise between 11 and 14 storeys. Lend Lease is also planning to build multiple towers of between six and nine levels, nearby.
Pelligra Group is chaired by Ross Pelligra. ResiCommercial is directed by Robert Brij. The sites were marketed by Gross Waddell’s Andrew Thorburn with Burgess Rawson & Associate’s Rick Silberman and Billy Holderhead.
The agents said more than 200 enquiries were received from a mix of investors and local and offshore developers. Eight offers were submitted following several rounds of an expressions of interest campaign.
Mr Pelligra said “With the building being home to SEN for so many years, we want to ensure the project will have a major focus on delivering a vibrant new work place bringing more jobs and new business to Swan Street, Richmond.
“We will work closely with the City of Yarra and our design team to ensure that this site is something that both local residents and international visitors can enjoy for years to come”.
At the eastern end of Swan Street, the properties are about three kilometres from the Melbourne CBD and within close proximity to the MCG and Rod Laver Arena. A Monash Freeway access point is 300 metres from the site which also has a tram stop on its doorstep, Mr Brij added.