FORZA Capital, the new investment vehicle created by breakaway Drapac senior directors Ashley Wain and Adam Murchie have made another commercial property play – paying $20.6 million for a low-rise office with redevelopment potential adjacent to the Exhibition Gardens and Melbourne Museum.
The five-level office (pictured, right) with 175 basement car parks at 15-31 Pelham Street in Carlton, near the CBD border, returns $1.74 million in annual rent and sold on a yield of 8.4 per cent.
Much of the asset’s value lies in its development potential – with the 3772 square metre block able to accommodate three or more major towers down the track. Carlton accommodates some of Melbourne’s most dense accommodation, configured as studios, or student accommodation. In 2010 local developer Grocon proposed a 280-metre, 89-level tower with 800 flats for a nearby Carlton site. It developed Victoria’s tallest skyscraper – the 297-metre 90-level Eureka Tower in Southbank, with 556 flats.