Salta boosts development pipeline $900m
Salta has boosted its Melbourne development pipeline to the tune of $900 million, this month winning approval to build three offices while also kicking off construction of a multi-tower build-to-rent investment.
In Richmond, the developer with Zagame Group has been given the green light to replace showrooms at 475 Church Street with a 10 level, 17,000 square metre commercial building.
About 1000 sqm will be retail.
The end value should circle $230 million.
The office would sit beside the 10 storey, 18,000 sqm Industry Lanes office, 459 Church St, which Salta developed with Abacus Group in 2022.
Salta goes it alone at Collingwood
In Collingwood, Salta will develop 60 Langridge St, Collingwood, with an eight level office (artist’s impression, top).
The plan comes seven years since the developer with Victor Smorgon Group proposed replacing the 1056 sqm block with a Tribe hotel.
The permitted project will contain 5500 sqm with ground floor retail and end of trip facilities.
Another Cremorne office
Meanwhile, Salta plans to replace 122-128 Dover St, Cremorne, with an eight level 8600 sqm commercial building with ground level shops.
The developer acquired the 1786 sqm Commercial 2 zoned holding in mid-2022.
The approved complex will also contain end of trip facilities.
The end value of it and 60 Langridge St is put at c$170m.
No development yet: Salta
Salta managing director Sam Tarascio said the three offices won’t be developed in the short term.
“Persistent challenges with work-from-home policies, increasing holding costs and escalating construction prices have prevented many developments from getting off the ground,” he added.
“While signs of a commercial market recovery are positive, Salta…will wait for conditions to further improve before delivering [the permitted projects] to the market,” according to the executive.
“Feasibilities for commercial developments remain particularly challenged.
“There is still a way to go with respect to office vacancy and return to office mandates – in conjunction with stabilisation of development costs and office capitalisation rates.
“The Victorian state government also needs to cease adding further burden to these projects with recent changes such as the increase to the Emergency Services Levy and the imposition of the Car Park Congestion Levy causing further damage to development feasibilities”.
Sod turned for $500m BTR project
Meanwhile, Salta today hosted a ground breaking ceremony for a BTR investment at 25 River St, Richmond – part of the Victoria Gardens site.
Six buildings with a total 476 dwellings are planned for the parcel, on the banks of the Yarra River – part of a proposal announced early 2023 with Vicinity, for 12 towers.
The end value is expected to circle $500m.
It will be managed by the group’s Est platform, which since October has managed another Salta asset of this type, Fitzroy & Co, in North Fitzroy.
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