V-Leader snaps up permit-ready South Yarra block

The Toorak Road plot (outlined) is in a high-rise development hotspot.

V-Leader is paying a speculated $22 million for South Yarra’s distinctive Hotel Claremont.

The 906 square metre site, 189 Toorak Road, at the north west corner of Claremont Street, contains a three storey c1866 Italianate building with 81 suites.

Inside the c1866 Italianate building, which can’t be demolished.

Two ground floor retail spaces are rented to Chemist Warehouse and Siricco.

Vendor Michael Renzella offered it permit-ready for a 12-level mixed-use project (artist’s impression, top) which it is expected V-Leader will proceed with.

Based on the asset’s current annual return ($181,500) – the sale could be being struck at a sub-one per cent yield.

Teska Carson’s Luke Bisset and Michael Ludski were the agents.

The former Ojay headquarters at nearby 671 Chapel Street was listed for sale last week.

V-Leader builds development pipeline

V-Leader placed a caveat on the title on Friday.

The deal comes a month since the developer sold Port Melbourne’s former Beacon Cove Food Store for $16.65m permit-ready for a residential complex.

The company also recently won permission to replace a low-rise commercial building at 600 Lonsdale St, in the CBD, with a 40-level tower containing 24,400 sqm of office space and 280 hotel suites.

In 2019, V-Leader paid c$40m for the ex-Glo-Weave factory, on 4287 sqm at 128-144 Wellington St, Collingwood.

That property is now the subject of a $140m project with two 15-storey structures with a 197-room guesthouse and c21,844 sqm of commercial space.

Construction could start soon

Any redevelopment of 189 Toorak Rd needs to retain the existing structure.

All the building’s occupiers are on agreements with termination clauses, allowing for the redevelopment to start soon (story continues below).

The acquisition comes two months since Oreana snapped up two neighbouring sites – South Yarra Square, on 1853 sqm, which cost $40m, and 169-175 Toorak Rd – which covers 613 sqm, and fetched $13.15m.

That developer is proposing a mixed-use project on its amalgamation, with a high-end hotel, offices, wellness centre and lower level retail.

In the area, Goldfields is completing a 24-floor commercial building; last week it won permission to fit the rooftop of it as a hospitality space.

Also recently, the ex-Ojay headquarters on 2070 sqm at 671 Chapel St was listed for sale last week.

Earlier this month Real IS paid Vicland c$75m for a new office at 11 Wilson St.

In March a consortium including Trenerry Group and the Kanat and Smorgon families announced plans to repurpose the historic Poolman House, at the south west corner of Domain and Punt roads, as a resort.

Proposed project

Mr Bisset said six offers were received following an expressions of interest campaign.

The permitted project allows for four shops – all up with 712 sqm of area.

It would also contain 1195 sqm of office space, 57 apartments and 30 car parks.

“The market’s reaction…underscored the contention that this was one of the best inner city development opportunities to come to the market this year,” according to the agent.

“It very much represented an exceptional development prospect in a precinct and environ that has evolved into one of the most in-demand residential and office locations outside of the CBD,” he added.

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Marc Pallisco

A former property analyst and print journalist, Marc is the publisher of realestatesource.com.au.