Site with no ceiling sells for $8.3m
An inner-city Melbourne building, subdivided in two and rented separately, has sold as one.
The office/warehouse at 51-55 and 57-59 Fennell Street, also exposed to Ingles and Anderson, Port Melbourne, collected $8.25 million – an 8.97 per cent net passing yield – from a local private investor.
Michelin Australia and HungryHungry are the occupiers.
The complex contains 2716 square metres.
The office component is considered A-grade.
There are also 59 car parks – not subject to the congestion levy.
Sky’s the limit
The 2561 sqm Port Melbourne site was marketed for its significant development upside – zoned Capital City within the Fishermans Bend renewal precinct, a minimum 16 levels is able to be considered.
“The property presents near-term leasing considerations while also creating opportunity to capture rental reversion” D+O Property’s Walter Occhiuto said upon listing the asset in April (continues below).
“The…Capital City [1] zoning with no height restrictions and support for mixed-use underpins compelling medium to long-term development potential,” he added.
It was offered well below replacement cost, according to the executive.
Charter Keck Cramer’s Lachlan Devine was the transaction manager.
The initial 248 hectare Fishermans Bend Urban Renewal Area was rezoned by then planning minister Mr Matthew Guy in July 2012, when the former industrial area was shifted into the Capital City Zone with no prescribed height limit.
The area was subsequently expanded to 491ha, before planning minister Mr Richard Wynne overhauled the controls through Amendment GC81 in 2018, introducing the revised Fishermans Bend Framework.
The new planning policy retained areas with no maximum building height.
This pocket of Fennell St, Port Melbourne, is about two kilometres south-west of Melbourne’s CBD.
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