Cremorne Super Site Sale Tipped to Top $80m


A Cremorne super site, formerly part of a match factory, is expected to fetch more than $80 million.

The 9715sq m site is one of the largest single landholdings in Melbourne’s city fringe, 3km from the CBD, at 560 Church Street.

The parcel of land is a Commercial-2-zoned island site with 60m of Church Street frontage and an estimated fully let net income of $2.4 million.

Melbourne-based Dawkins Occhiuto director Andrew Dawkins said the site offered scale “with the potential for a landmark staged development”.

“We expect a site like this to create quite a stir in development circles based on its history, the all-around accessibility to a very large site, the flexible zoning and the significant income stream,” Dawkins said.

“Then there is the extraordinary and ongoing demand that this precinct has attracted in recent years and the confidence that developers will have around delivering a new project in such a strong market.”

Rothelowman has drawn up concept plans for the site with an indicative gross floor area of about 44,000sq m over 12 to 16 storeys, with 500 basement car spaces.

“While this scheme is one of many possible development scenarios and does not purport to represent the highest and best development outcome for the site, it nonetheless provides an indication of what, subject to council approval, this outstanding site may be able to deliver,” Dawkins said.

The property is for sale by expressions of interest, which closes on November 11.

▲ 2-6 Gwynne Street at Cremorne is expected to attract offers of more than $40 million. Image: Colliers
▲ 2-6 Gwynne Street at Cremorne is expected to attract offers of more than $40 million. Image: Colliers

Down the road, local developer Roche Holdings has moved to sell a seven-level office building at 2-6 Gwynne Street.

Roche Holdings director Nick Roche said the family-owned company had other development sites at various stages of planning approval across Cremorne.

“With several projects on the drawing board to be constructed and given 2-6 Gwynne Street is approaching fully leased, the family felt the timing was right to sell this asset,” Roche said.

They recently sold another completed office building at 45 Wangaratta Street, which sold at a record capital value of almost $13,500 per sq metre.

Colliers agent Peter Bremner said given yields in areas like Cremorne were now sub 5 per cent and capital value rates were more than $13,000 per sq m, he anticipated the Gwynne Street property would net more than $40 million.

“This year, we have seen three major $200-million-plus office sales in the Melbourne Metro market,” Bremner said.

“However, the market is starved of new trophy commercial assets below $50 million and there is considerable pent up demand from various buyer types in this price bracket.

“As a result, we anticipate strong interest from private investors, syndicates, institutions and offshore groups for this outstanding asset on Gwynne Street.”

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