Associated Retailers Limited’s former inner-city headquarters is for sale with two redevelopment schemes.
The half acre site, at the south east corner of Burnley and Murphy streets – about 300 metres from the Harry the Hirer’s block where a Gurner JV announced an $800m residential project this week – could sell for more than $17 million.
The property was recently permitted for a nine-storey office with ground floor retail – all up with 10,000 sqm of lettable area.
An alternative scheme for a double-height showroom beneath three levels of commercial space is also being marketed as part of the latest sales campaign.
Given the zoning, either proposal could incorporate education, hotel, healthcare or aged care product.
The brokers said the vendor is going to market after receiving several unsolicited offers.
Two recent development site sales in the suburb – respectively valuing every sqm at a high $13,004 and $14,699 – the latter, for Cremorne’s 65-81 Dover St to Fortis (for $26.9m), could also be a factor.
Light to four sides and a city view: 175 Burnley Street
The high-rise office proposal was penned by Jackson Clements Burrows.
Predominantly glass, the building would offer large floorplates and light from four sides; it is also designed with a rooftop terrace, balconies and three level basement containing 122 car parks, end-of-trip facilities and a bike workshop.
The ground floor retail area spreads 606 sqm.
Valuable land, rent
“Areas of Richmond, particularly Cremorne, have seen values skyrocket with land value sitting at about $13,000 per sqm and rents at above $600 per sqm, pa,” Mr Vinci said (story continues below).
By comparison, the 175 Burnley St guide prices the land at less than $10,000 per sqm.
Fonterra, Ford, Forever New, GE, REA Group, Sony Music and TPG are amongst Richmond’s highest profile office tenants.
Hardie Grant, MYOB and The Walt Disney Company occupy in its pocket of Cremorne.
Reece and Seek pre-committed to commercial buildings presently under construction in the area – the former will move from Burwood and the latter, from St Kilda Road.
Fred IT, which recently pre-committed to the Craftworks office in neighbouring Abbotsford, will pay net rent of $495 per sqm, pa.
In South Yarra – Oreana recently signed a lease for 2200 sqm at 627 Chapel St, spending $620 per sqm, pa, net.
Harry the Hirer site to be rezoned, developed
The listing comes a week after Gurner unveiled plans to replace 81-95 Burnley St with an $800m project with a shopping centre and c500 apartments in five buildings.
Though no purchase price was reported, sources estimate the 1.3ha site – which will now be rezoned – would be worth about $120m.
The towers will rise between seven and 12 storeys.
Part of the block is earmarked for a high-end aged care facility.
A c600 sqm park is also planned.
“This site is one of the largest we have acquired and will really allow us to create something…special and be a truly self-sustaining village within a suburb,” director Tim Gurner said.