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 Commercial 1 within the Fishermans Bend renewal precinct, a minimum 16 levels is able to be considered (continues below).
“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.
“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.
This pocket of Port Melbourne is about two kilometres south-west of Melbourne’s CBD.
Subscribe to our newsletter at the bottom of this page.
