Telstra sells historic Melbourne post office to developer
Up Property has bought one of the highest character commercial properties in Armadale – where it is headquartered – as a medium-term residential-based mixed-use development play.
The c1919 telephone exchange and former Australia Post office at 8 Llaneast Street, a site also the Malvern border, is trading for close to $7 million.
With 1475 square metres, Telstra offered it with a three year leaseback; the result reflects a sub 5.5 per cent net passing yield.
On 1111 sqm, zoned Commercial 1, the property is after that expected to accommodate a luxury apartment conversion – possibly with an extension – with commercial components.
“We are excited about the potential to breathe new life into this historically significant building,” Up Property general manager, Marcus Jankie, said.
“This project perfectly aligns with Up Property’s mission to create spaces that enrich communities,” he added.
“Acquiring this asset, with its short-term lease, allows us to plan our next steps meticulously,” according to the executive.
“This acquisition exemplifies our commitment to active participation in the acquisition space, focusing on unlocking value through development and refurbishment” (story continues below).
Profitable progress
Stonebridge’s Julian White, Max Warren and Chao Zhang marketed the Llaneast St investment, one holding from the Glenferrie Rd, Malvern, retail strip.
As it invests in digital technology, Telstra no longer needs traditional exchanges, dotted in thousands of locations.
In recent years, in Melbourne, it has divested small surplus properties like Armadale at Hampton Park, Point Cook, Rowville and Springvale – often with short leasebacks and occasionally with a redevelopment scheme value-added.
This week, following a Gross Waddell ICR deal, it also divested an exchange with a leaseback at 80 Camberwell Rd, Hawthorn East, for $6.35m to a residential developer, which is the most common buyer type of these assets.
In mid-2020 the telco sold a Clayton multi-building data centre with a leaseback to Centuria for $416.7m.
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