Two neighbouring Richmond properties creating a 5433 square metre C-shaped super-site, have hit the market giving prospective joint venture partners a building block for now, and later.
The Swan Street Collection is being marketed by TCI’s Jack Teneketzis as follows:
362-368 Swan Street, Richmond
- A 3103 sqm site containing a 2026 sqm showroom leased to Zagame Automotive and Telstra until 2021 and returning total annual rent of $521,000.
- Available for outright sale, but with a focus on a joint venture partnership.
382-386 and 388-390 Swan St, Richmond (pictured, top)
- A 2330 sqm block containing two modern showrooms occupied by Zagame’s Lamborghini and McLaren dealerships on 15-year leases which have a demolition clause which can be exercised in 2027. These properties currently return annual rent of $651,000.
- Available as a joint venture only.
The properties are owned by various members of the Anassis family.
Rezone windfall coming
The land is the subject of a rezoning application from Commercial 2 to Commercial 1: a move which would allow residential redevelopment.
Mr Teneketzis said buildings between 10-12 storeys could be considered following the (C191) gazetting.
About two kilometres east of Melbourne, the blocks abut the train line between East Burnley and East Richmond stations.
They encapsulate the former Agnews Fireplaces showroom at 376 Swan St (a property presently for lease asking annual rent of $220,000).
“Swan St is the epicentre of Richmond – a technological, business and lifestyle hub,” according to Mr Teneketzis.
“It’s no coincidence that MYOB, Seek and the first autonomous 7-Eleven call Richmond home,” he said.
“The Swan Street Collection is perfectly located to fully capitalise on each and every upside Richmond has to offer.
“It has the highest and best development potential within the Swan Street Activity Centre”.
Call for JV partners more common
The Swan St Collection campaign is unusual – but not unheard of – in that it seeks a joint venture partner or sale (of 362-368 Swan Street).
In these arrangements, the developer and site owner share in profits.
Elsewhere in Melbourne, Mirvac is teaming with (site owner) Freemasons Victoria for a luxury apartment project replacing East Melbourne’s Dallas Brooks Hall.
Little Projects has also teamed with Freemasons to replace blocks in Box Hill and Kew East recently (story continues below).
Last August we reported that builder proposed a seven-storey apartment complex at 17-22 Grattan St, Prahran, in conjunction with the site owner.
Tim Gurner is also co-developing properties in, amongst other suburbs, Fitzroy North, South Melbourne and St Kilda.
A partnership of this type “can be a brilliant outcome for the joint venture developer and land owner, and is something we should, and will, see more of in the future, under certain circumstances” Mr Teneketzis added.
“The key factors in brief, are two parties who have an aligned mindset in terms of development principles and outcome, and also, the capability to undertake the respective development individually”.
Elsewhere in Richmond
In May, we reported that Riverlee and Bamfa Properties were proposing a 13-storey, 17,000 sqm office at 484 Swan St – a 1163 sqm block co-owned between 2000-2009 by former state premier Jeff Kennett.
Like the Swan St Collection, that property abuts the train line.
An 11-floor hotel, pre-committed to Mantra, is also earmarked for a Richmond site at 203-207 Bridge Rd.
Last October, prestige real estate Ross Savas spent $8.7 million on a 749 sqm industrial property with commercial redevelopment upside at 11-15 Albert St, Richmond.
Pelligra Group also plans to replace the SEN Radio studio at 471-479 Burnley St, in the suburb, with a hotel.
Last month, we reported Gus Cooper and Michael Gannon’s Cremorne Properties proposed two offices, of 10 and four levels, at 68-88 Green St, Cremorne.
The pair recently started constructing a seven-level office at nearby 60-88 Cremorne St, which will be home to employment website Seek.
Elsewhere near the Yarra River part of the area, Caydon is building MYOB a headquarters at 17-21 Harcourt Parade.
Last September, Caydon sold this Cremorne office to AXA Investment Managers on a funds through basis for about $100m.
Swan Street Collection value
Mr Teneketzis isn’t quoting a guide.
Land values circle around $10,000 per square metre.
Last month, we reported a Cremorne site sold for $13,600 per square metre.