A strata titled gym – a 1148 square metre piece of Pitard Group’s recently completed Elsternwick Village Apartments building, in Melbourne’s inner south, has traded for $5.2 million.

Leased to Anytime Fitness for 10 years, the result for the asset, 14 Ripon Grove, reflects a 7.7 per cent net passing yield.

The rental agreement includes fixed 3.5pc annual rent rises.

The incoming owner will be able to claim tax depreciation benefits too.

There also 19 car parks (story continues below).

In Elsternwick Village, EVA, which goes by the address 233-247 Glen Huntly Road, contains c100 units over 12 floors.

Aston Commercial’s Joshua Colosimo and Jeremy Gruzewski with Iceberg & Co marketed 14 Ripon Gve for Simon Pitard, formerly co-director of failed developer Steller.

Elsternwick is about nine kilometres from Melbourne’s CBD.

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Camilla Speer, the daughter of prominent property developer and investor David Deague, and her husband, Affinity Equity Partners head Nick, have quietly sold an enormous waterfront Portsea pile after four years and a renovation.

The five bedroom c1963 Rovina, also once known as Watkins House, a cottage, boatshed and mooring, is speculated to be selling for about $25 million, according to local agency sources, shy of the suburb record, $26m, and Mornington Peninsula one – $30m, paid by BGH Capital’s Ben Gray for Sorrento’s Westbank in early 2022.

Message Media founder Grant Rule and his wife, Dr Sophie Oh, are being reported by Nine as the buyers. The pair paid $74.5m in 2022 for a St Georges Road, Toorak, home.

Rovina is the second recent major Portsea property to sell recently, with the c1910 Wandin, on 3538 square metres at 3592 Point Nepean Road trading for $15m in February.

That buyer, businessman Ken Biddick, owns a neighbouring property which cost $7m in 2013.

RT Edgar’s Warwick Anderson brokered both sales.

Renovated Rovina flipped

The Speers’ paid $13.48m for Rovina, on 1997 sqm at 3808 Point Nepean Rd, in March, 2020, just as the first national lockdown kicked in.

That seller was aged car entrepreneur Russell Knowles, also the father in law of Simon Pittard, who co-led failed developer Steller (story continues below).

Former home owners include horse trainer Jonathan Munz, who sold it to Mr Knowles for $13.8m in 2018.

Décor founder Brian Davis and James O’Connor, who ran Mercedes-Benz dealership Kew Star Motors, have also held the title.

Since 2010, the record for a Portsea home was $26m, paid by investor John Higgins for Ilyuka on Point King Road.

Rovina was offered after Mr Speer was appointed to lead Affinity, which is Sydney based.

Mid-last year the pair sold their Melbourne family home for $14.5m.

In Toorak’s ritzy St Georges Rd, that was another windfall deal, coming in almost double the $7.65m they outlaid in 2015.

The Deague family meanwhile hold adjoining Sorrento properties including a pile formerly accommodating a Guildford Bell home, Baillieu House, next to St John’s Anglican Church, which cost $21.5m in 2017.

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Calvary Health Care has listed a Parkdale hospital bought as temporary accommodation while it rebuilt a Caulfield South site as a health and retirement precinct.

The healthcare group paid $10.2 million for 152 Como Parade West in December, 2019 – four months before the national lockdown.

Healthscope was that vendor; it took a major haircut on the $11m it agreed to accept following a public marketing campaign in mid-2018 from Steller, which collapsed before settlement.

Calvary had only just leased the property from Healthscope before it was relisted for sale in late 2019.

Residential development upside

On 1.18 acres, 152 Como Parade West contains 3500 square metres of improvements leased until late next year to Acciona’s Coleman Rail, which holds some level crossing removal contracts, at $528,000 per annum.

Prior to its use as an office, the buildings were configured with 18 single rooms and seven double rooms – all up able to accommodate 32 beds – a gym, consulting suites and physiotherapy treatment spaces.

As well as occupiers and investors, the agents are expecting developers to look in – zoned General Residential 2, it could accommodate townhouses and, in parts, apartments.

Savills’ Julian Heatherich, Benson Zhou and James Latos are the agents (story continues below).

Parkdale is 23 kilometres south of Melbourne’s CBD.

Ex-Volkswagen dealership for sale

Also this month, in east Doncaster, developer Oliver Tong Yubin has listed a former Volkswagen dealership at 584-588 Doncaster Road, on the south west corner of Elgar, permit-ready for a c$120m mixed use village with 260 dwellings in an 11 storey tower.

Having paid $23.3m in 2015 for the 8176 sqm holding also incorporating 811-813 Elgar Road and 3 Briar Court, the vendor is hoping to break-even; the guide is $20m-plus.

4Cyte Pathology leased the asset for $10,000 a month during COVID.

Savills is again the sales agency.

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Trenerry Property Group, Victor Smorgon Group and the Kanat family are selling South Yarra’s landmark Poolman House after plans to repurpose it as a luxury resort were scuppered.

On 2753 square metres – believed to be the second biggest holding in the suburb’s exclusive Domain precinct – the property is asking $21-$23 million, according to sources.

The consortium outlaid $18.25m in March, 2021, after a public marketing campaign.

That seller was aged care investor John Matthies, who paid $2.7m in 2000 as a family home.

Poolman House

At 253-257 Domain Road, on the south west corner of Punt, Poolman House was developed in 1865 and extended 95 years ago.

It contains six bedrooms, a study, drawing room, library and internal courtyard. A ballroom is believed to have entertained former federal Liberal prime ministers Scott Morrison and Tony Abbott.

The block also includes a tennis court, pool and gardens penned by Paul Bangay.

Trenerry with the Kanat and Smorgon families was intending to extend and repurpose the property as a members only Soho House branded resort with a 12 key hotel, bar and event space with 3am liquor licence, 21 bay basement car park and oversized pool.

The listing is coming about after that plan was rejected last August by the City of Melbourne (story continues below).

An appeal later lodged with the Victorian Civil and Administrative Tribunal was withdrawn.

Marshall White’s Marcus Chiminello is the agent.

The disposal comes two months since the consortium acquired 256 Crown St, in Sydney’s Darlinghurst, from Centennial, also with plans for a Soho.

More Victorian resorts planned

Trenerry, led by Robert DiCintio, with the Kanat and Smorgon families, is intending to develop a resort like that planned at Poolman House, at a nearby as yet undisclosed site.

The owners recently unveiled plans to repurpose and extend Sherbrooke’s Burnham Beeches.

That project will include glamping elements and an open-to-the-public vegetable garden.

The consortium also recently completed a major redevelopment of Sorrento’s Continental Hotel – a block it picked up part-constructed for $14.5m in 2020 after a former co-owner, Steller, collapsed.

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Developer Gary Busuttil is selling a three level commercial asset constructed on the site of the London Hotel, which was demolished in 2017.

Expected to trade for over $9 million, the Ewart Leaf designed building, offered with the former pub’s 3am liquor licence, is being targeted to hospitality investors or occupiers wishing to capitalise on its position opposite the beach and Station Pier.

Office, retail or essential services businesses, like a childcare centre or healthcare group, could also occupy all or part of the 949 sqm space, which needs to be fit out.

Pub lost

Mr Bussutil paid $4.5m for the Port Melbourne holding in 2012.

The developer made headlines when he later decided to demolish the former two storey pub, developed in 1861 and extended between 1939-1941, as part of plans to construct an eight level apartment project behind it, facing Princes St.

Also in 2017, another St Kilda hotel, the c1853 Greyhound Hotel, at 1 Brighton Road, was razed after that site was permitted to make way for a seven storey residential complex and later sold (story continues below).

Multiple occupancy outcomes

JLL’s Will Connolly, Jesse Radisich and Tim Carr are marketing 92 Beach Street for Mr Busuttil.

“True waterfront venues are, and always will be, incredibly elusive to acquire, especially in the heart of one of Melbourne’s premier bayside suburbs and with operational advantages such as the already late night 3am liquor licence,” Mr Connolly said.

“This truly is an incredible opportunity for a hospitality operator to create one of the more spectacular Melbourne venues, with much of the physical work to the asset already delivered upon,” according to the executive.

Mr Carr added the building could make way for office accommodation, including as three whole floor tenancies.

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Ryman Healthcare is on track to becoming Victoria’s biggest aged care and retirement living provider after snapping up two more sites in Melbourne’s north west and another on the Bellarine Peninsula.

In the biggest deal, the group is paying $35 million for the former Kealba Secondary College at 27 Driscolls Road (outlined, image, top).

The vendor acquired the 6.1 hectare block from the state government in 2017, later winning approval to replace it with 194 townhouses.

Ryman will instead apply for a $155m integrated retirement village with independent living units and a full aged care complex offering specialist dementia care.

A bar, bowling green, café, cinema, gym, hair and beauty salons and indoor pool is also planned.

The site abuts the Bellara Crescent Reserve allowing some dwellings to have north facing park views.

It is near Keilor Central shopping centre too.

“There is a particularly acute shortage of retirement living and aged care options in the Kealba area so we’re keen to help meet that pressing need in the community,” Ryman Australia chief executive officer Cameron Holland said.

“We know that retirees looking to downsize don’t want to go just anywhere,” he added.

“They want to be in a great location and remain connected to the family, friends and social networks in their community,” according to the executive.

“This village will give people who’ve lived in Kealba for decades that opportunity”.

Colliers’ Hamish Burgess and Joe Kairouz brokered the off-market Driscolls Rd deal.

Ryman expands Essendon, Ocean Grove holdings

Meanwhile, Ryman has purchased an operational retirement complex – Essendon Terraces – at 262-270 Pascoe Vale Rd.

With 36 units and 22 residents, this property neighbours a 1.8ha parcel, 1 Moreland Rd, which the operator acquired in May with plans for a $165m village.

The new site will become part of that development – allowing the operator to again offer retirement living and aged care in the one community (story continues below).

The vendor of both Essendon properties, Lionsville, was represented by PwC’s Alan Herrman, Jonathan Lee and Ross Hamilton.

“Lionsville is pleased to have a single specialist operator across the entire Essendon site that shares their values of comfort, care and security, and that would provide residents the quality care they need and deserve,” Mr Herrman said.

“Creating a community legacy was really important for Lionsville and working with an international player like Ryman Healthcare which has the capital and capability to deliver on the vision was crucial,” he added.

“Lionsville’s main objective to provide benevolent relief to people in need will remain, hence it will continue to explore initiatives that would support people in the community that are suffering from poverty or distress”.

In a third deal, at Ocean Grove, Ryman has purchased a 2.35ha farm next to its operational Deborah Cheetham Retirement Village which is designed with 82 two and three bedroom dwellings, 53 assisted living suites and a 120-bed aged care centre.

The new site is expected to accommodate 66 villas.

On track to be the biggest

Ryman now holds seven operational Victorian villages – all up an investment of over $1 billion.

Six more are in the development phase, including at Highett, Mt Eliza, Mt Martha and Ringwood East.

“Since opening our first village in Melbourne seven years ago we’ve seen a huge appetite for high quality retirement living communities that also offer aged care on site,” Mr Holland said.

“Older Australians want the peace of mind that comes with knowing that if their health needs change, they’ll be able to access world-class aged care right where they are,” he added.

The New Zealand listed company is expected to be the biggest operator in the Victorian retirement living and aged care sectors within a few years.

“The sector is attracting significant interest from both local and institutional investors, driven by strong market fundamentals and expected growth in the sector,” Mr Lee said.

As a result of Australia’s ageing population, he added, demand for high quality aged care and retirement living is growing.

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A Preston home with development upside, bequeathed to the Royal Children’s Hospital, is for sale.

On 503 square metres, 82 St Georges Road is expected to trade for $750,000-$820,000.

The campaign is targeting renovation rescuers – with an original c110 sqm Californian Bungalow containing three bedrooms and a garage.

Given its main road location opposite a tram line and its General Residential 2 zoning, the property is also expected to attract medium density developers.

The listing comes seven months since the RCH sold an Albion warehouse-converted-reception centre, also donated to it, for $1.91m – about twice expectation.

Million dollar suburb

Teska Carson’s George Takis will auction 82 St Georges Rd next month.

“Preston is a highly sought after and rapidly developing suburb, only nine kilometres from Melbourne CBD, which has and continues to benefit from new development, population growth and gentrification, providing owner-occupiers, investors and developers with excellent growth potential,” the agent said (story continues below).

“Key drivers have included a first-rate level of amenities including…Northland Shopping Centre, trains, trams and schools,” he added.

The Preston Market, which was recently refurbished and has in recent years been the subject of a major redevelopment with apartments, is also in the vicinity.

Earlier this year, Metro Property Developments acquired a 1.82ha block at 22 Woods Street, in the suburb, with plans for a townhouse village – Preston Place.

Twelve months ago, social housing provider Unison outlaid $2m for a 573 sqm block on Bell St – not far from 82 St Georges Rd – for a six storey project.

Once a working class suburb, Preston’s median house price is now $1.17m – up from $580,000 a decade ago, according to REA Group.

Mr Takis also sold the Albion property for the hospital.

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Dexus has made the first investments for its Real Estate Partnership (DREP1), an opportunity fund launched last August.

In Melbourne’s Elsternwick, the group will provide a $70 million construction loan facility for the Pitard Group, where executive of failed builder Steller, Simon Pitard, is a director.

The nine level complex with 99 dwellings and ground floor office and retail is under construction at 233-247 Glen Huntly Road.

DREP 1 will partner for the delivery with non-bank lender Solido Capital.

Also in the Victorian capital, on a 1500 square metre Richmond site, the fund will develop a 10,000 sqm A-grade office – assuming the vendor can obtain a permit.

Upon completion in 2024, it is believed this asset will be sold.

Meanwhile, in Sydney’s west Chester Hill, the trust will take a half interest in a 3.8 hectare industrial site, 149 Orchard Rd, with the potential to make way for a 20,000 sqm business park.

The end value of the projects is speculated to be $245m (story continues below).

DREP1

DREP1 is a closed ended vehicle backing higher risk investments.

Dexus, which is a co-investor, last year said the entity would be the first in a planned series of opportunity funds.

“The fund will seek to provide investors with an enhanced return via exposure to investments in property repositioning, development, special situation opportunities and alternative credit,” the manager added.

“DREP1 represents a unique opportunity for unlisted investors to access a concentrated exposure to this strategy, which has not previously been made available.

“DREP1 will be positioned for investment opportunities as a provider of both capital and capability, drawing upon Dexus’s large scale integrated real estate platform to provide the fund with competitive differentiation”.

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As part of plans to exit the gambling industry by next August, Melbourne Football Club has sold a Bentleigh pub to residential builder Metro Property Developments.

The deal for the Bentleigh Club, covering 33 Yawla Street and 32-46 Huntley Road, is worth $23.7 million.

In a statement to members, the team’s chief executive officer Gary Pert said proceeds will be tipped into a future fund, to secure its long-term security.

This trust will invest in other income deriving assets.

Melbourne acquired the Bentleigh property in 2011 as part of a deal that also paid the former operator’s $3m debt.

The team has been associated with the pub since 1996.

The venue will now close next year.

Metro spends again in Melbourne

Metro was co-established in Brisbane 11 years ago by Luke Hartman and David Devine; it is now owned by the former.

Earlier this year, the group spent $23.65m on a former Northcote bus depot at 198 Beavers Rd – now making way for a medium density residential project, Northcote Place.

Metro also recently snapped up a Preston housing estate site at 22 Wood St – previously owned by Steller – which will be marketed as Preston Place.

The 1.026 hectare rectangle Bentleigh block – with its 78 metres of street frontage – would be able to accommodate over 50 townhouses.

“The Bentleigh Club is a terrific parcel of land and adds to our strong pipeline of nine active projects in the middle ring of Melbourne,” the group’s general manager, Victoria, David Steele said. 

“We very recently sold out of our 8-Star Northcote Place project and Ascot Place project (both under construction) and our Boardwalk land estate in Point Cook has now sold 50 blocks of land in only six weeks which gives us great confidence in the Melbourne market,” he added (story continues below).

“We will now look to design a community in Bentleigh, that, like our other projects, is sympathetic to the neighbourhood character and responds to the strong market demand for large, well designed townhomes”.

Stonebridge Property Group’s Julian White and Chao Zhang represented Melbourne; Charter Keck Cramer was the transaction adviser.

“There was excellent market interest in this campaign, with over 20 offers received and a significant amount of highly qualified capital left seeking good quality development sites suitable for townhouses,” Mr White said.

Strength and stability off the field: Gary Pert

Mr Pert said the property disposal follows its decision to exit gaming.

“At a time when we are experiencing great success on the field, the sale of the Bentleigh Club highlights our strength and stability off the field, too” he added.

“Financially, we are in the strongest position we have ever been in our long history as a club and this [sale] is a crucial step in solidifying this financial security,” according to the executive.

“We club is debt free and now in a position to future-proof itself”.

Another south east pub sale

The Bentleigh Club sale comes three months since the Boundary Hotel, in Bentleigh East, traded for $33m.

Last month, ALH banked $15.66m – nearly $4m over book value – for Cheltenham’s Tudor Inn.

Both these properties were marketed to investors with long leases.

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Ryman Healthcare has picked up a development site opposite Mirvac’s master-planned Waverley Park.

The 4.7 hectare tract – between 1962-2017 with buildings once occupied by St Mary’s Seminary – is expected to be replaced with over 80 villa units, 110 independent and serviced apartments and a 60-bed aged care complex.

It would be the New Zealand buyer’s first predominantly single-storey Melbourne community since entering the local market nine years ago.

The purchase comes two months since Ryman acquired a 1.8ha former Lions Club retirement home, in Essendon, with redevelopment plans.

In 2019, the operator snapped up the ex-Highett Bowls Club; on 1.2ha it came permit-ready for a complex containing 90 beds, 15 assisted living units and a 122-bed retirement home.

New plan for 62-94 Jacksons Road

Ryman is paying $30.08 million for 62-94 Jacksons Rd.

The vendor held it six years – and obtained a permit for an aged care community with four buildings – the highest of eight storeys – with a total of 216 units and a 128-bed home.

That proposal also included an integrated medical centre.

Ryman Australia chief executive officer Cameron Holland said its replacement village mix will give the investment a point of difference in the company’s Melbourne offerings.

“If we’ve learned anything in almost 40 years of doing this, it’s that you can’t be one-size fits all,” he added.

“People want choice and, while we’ve seen really strong demand for our apartment-living options, a lot of older Melburnians are keen to downsize to something that provides a different kind of lifestyle,” according to the executive.

“Our integrated model offering aged care on site has proved extremely popular with people who want the peace of mind knowing their healthcare needs can be met in one village community (story continues below).

“When we’re looking for a site for a Ryman village location is everything, and you’d be hard pressed to find a better location than this one,” Mr Holland said of the site.

“It boasts spectacular views of the Dandenongs from its hilltop position, while enjoying easy access to shopping centres and key transport links,” he added.

As well as the accommodation, the proposal will include a cafe, bar, cinema, gym, hair and beauty salons and an all-weather bowling green.

Thirteen offers

Colliers’ Shalain Singh, Hamish Burgess, Joe Kairouz and Chris O’Driscoll, who marketed 62-94 Jacksons Rd, said 13 offers were received from a mix of aged care, retirement living and residential developers.

“The evolution of healthcare in Australia means sites such as these, where integrated healthcare can be made available are very much in demand, especially with entrants looking to take on more established players,” Mr Singh added.

“Healthcare is fast becoming the alternate investment class of choice both locally and internationally,” according to the executive.

“As a result, development sites that provide an avenue for healthcare assets are finally seeing investors, developers and owner operators competing strongly with the traditional highest payers being residential”.

Mr Burgess said escalating prices and strong clearance rates in established suburbs “are driving demand from townhouse developers, while the aged care retirement living players continue to compete to secure a limited amount of infill sites that are suitable for their use”.

The Jacksons Rd site is near shopping centre Waverley Gardens.

Mulgrave is 21 kilometres south east of the CBD.

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