In May 2015, GormanKelly sold 132-142 Wellington Parade, East Melbourne. Located on the corner of Powlett Street, opposite the MCG and Jolimont train station, the commercial property represented one of the most premium metro sites to be offered for some time.
The existing improvements were fully leased returning $529,391 per annum. As property management agents for the site, GormanKelly had structured the existing 7 leases with redevelopment clauses, which now allows for the site to be redeveloped in the next two years.
The 709sqm site offers potential for 8 levels of development. With its flexibility and holding income the property generated significant interest from local and internationally based developers and investors.
The campaign generated in excess of 200 enquiries with 22 Expressions of Interest received. We were quoting an expected sale price in excess of $9.5 million, based on comparable market evidence, with the property selling for an undisclosed price circa $13 million.
The price is believed to be one of the highest rates for a development site at around $18,000/sqm for land area and a yield of around 4%. The property was sold to a locally based developer, who is well known for achieving high end products. The purchaser is planning an elite residential redevelopment which they anticipate will be well received within the affluent East Melbourne market.
The sale price is testament to the amenity and appeal of the premium location and the purchaser’s confidence in their ability to offer their exclusive apartments at a new high end. The difference in the level of offers received reflected each tenderer’s assessment of what they could ultimately achieve with their final apartment products.