Salta Properties pays $14.75 million for former Telstra building in Richmond
Salta Properties is continuing to landbank office development sites in Melbourne’s inner-east Richmond.
This time, it is paying $14.75 million for a 2944 square metre site at 173-177 Barkly Avenue, between Burnley Street and the busy Gibdon Street/Monash Freeway intersection.
The property includes a low-rise red-brick warehouse occupied for years by Telstra.
Since about 2009, high-end residential fit-out retailer Rogerseller has rented it.
Salta is buying the asset with a long lease in place.
The property offers commercial development upside – with any taller tower able to capture views over the Monash Freeway to the Yarra River and Loy’s Paddock Reserve.
It would also capture unobstructed aspect over Toorak.
On the north-east corner of Adam Street, 173-177 Barkly Avenue is about 300 metres from the Burnley train station.
In this area, we recently reported about possible development at adjoining properties: 362-368 Swan Street and 382-390 Swan Street.
Pelligra Group is also planning a major project to replace the SEN Radio studio at 471-479 Swan Street, which it bought for more than $25 million last year from Reject Shop founder Ron Hall.
Riverlee and Bamfa Properties recently launched a leasing campaign for a permitted 13-level office at 484 Swan Street – a site once co-owned by former Victorian premier Jeff Kennett.
In late 2017, Salta paid $51 million for a 5276 sqm site at 459-471 Church Street, Richmond, which is earmarked for a commercial redevelopment.
Salta is also still developing around Victoria Gardens: a shopping, office and residential complex built on former Melbourne Fire Brigade land at the south-east corner of Burnley and Victoria streets, Richmond.
The 173-177 Barkly Avenue deal was brokered by Colliers International’s Rob Joyes, Rachel Clohesy and Peter Bremner.
“The City Fringe office market is experiencing unprecedented demand from tenants looking to decentralise from the CBD and minimise their exposure to escalating rents,” Mr Joyes said. “In terms of staff amenity a suburb like Richmond or South Yarra provides an edgy food and beverage offering and excellent accessibility to the major train lines that service the bayside and eastern suburbs”.
“It’s definitely the right strategy to acquire income holding land banks for the future”.
