Diversified property group Salta has sold its 50 per cent stake in Preston Market to long-term co-owner Medich Corporation, finalising the transaction this week after more than two decades of joint ownership.
The divestment would allow Salta to redeploy capital into priority growth areas including its expanding build-to-rent business Est, along with industrial and commercial portfolios.
Settlement transferred full ownership of the market to Medich Corporation, though both companies retain joint ownership of adjoining Cramer Street land, which is earmarked for future housing development.
Salta managing director Sam Tarascio said the decision reflected strategic focus on projects ready for immediate development.
“After more than twenty years of proud stewardship alongside Medich Corporation this divestment is a bittersweet decision, but it reflects our strategic focus on realising projects where we can turn dirt and deliver in the near term,” Tarascio said.
The partners acquired Preston Market in 2004 with plans for a transport-oriented mixed-use precinct incorporating quality housing near Preston train station.
Complex planning processes and the introduction of a heritage overlay in 2023 required material changes to original development plans.
“Both parties have put a lot of time and investment into ensuring our plans could deliver an outcome that would balance housing needs, while prioritising the preservation of the market’s character and its traders,” Tarascio said.
Current property market dynamics do not support immediate investment in the proposed development scale, according to the company.
Salta has shifted its focus to investment on its burgeoning build-to-rent pipeline, including a $500-million flagship precinct within Victoria Gardens, Richmond, that would deliver 476 apartments across six buildings up to 17 storeys.
“As a private business, we’re able to move quickly and invest where we see genuine demand,” Tarascio said.
“That means creating homes people are proud to live in, in neighbourhoods they love, with the kind of services and amenity that give them a reason to stay for the long term.”
A 38-storey build-to-rent project at 699 LaTrobe Street in Docklands designed by FK is also in the planning stages.
The tower would comprise 560 build-to-rent apartments across a seven-level podium.
Facilities would include a residents’ lounge, bicycle workshop, cafe, co-working area, fitness centre, pool and wellness room within the podium. The 37th floor would feature dining areas, lounges, adaptive spaces and external amenity areas.
The group maintains focus on expanding industrial and commercial portfolios, with Nexus Dandenong South Industrial Precinct adding major tenants and three approved permits for modern office developments in Cremorne, Richmond, and Collingwood.
Preston Market was established in 1970 following European migration to Melbourne’s northern suburbs.
Many traders have operated at the market for more than 20 years, with Salta and Medich Corporation investing in infrastructure, amenities, public spaces, and safety improvements during their ownership period.