Property Development

Pace Development Group sells near-complete Collingwood office for $31.6 million

Pace Development Group sells near-complete Collingwood office for $31.6 million
Written by The ReReport
As seen in the Source link, written by on 2019-12-04 05:47:33

The 11-level office at the south east corner of Langridge and Wellington streets sold for $31.6 million on a 5.06 per cent net market yield.

Pace Development Group is banking $31.6 million from the
sale of a compact office, nearing completion in Melbourne’s inner north east Collingwood.

The 11-level, 3082 square metre building at 51 Langridge Street found favour with a private investor in his 70s who grew up in the area.

It occupies a 510 sqm plot at the south east corner of
Wellington Street.

Opposite the site, Cbus Property is completing a 14-storey residential project, Holme, with 154 flats.

Adjacent to 51 Langridge Street, Pace is developing a residential complex on the ex-Smith Family headquarters.

Last month we reported that adjoining warehouses at nearby 8-10 Gipps Street, Collingwood, sold four days after the launch of an expressions of interest campaign.

Covering a 417 sqm site, the tenanted warehouses traded for
a price speculated to be close to $8 million.

The incoming owner, a developer, plans to refurbish the space as boutique offices.

CBRE’s Scott Orchard, Josh Rutman, Mark Wizel and Lewis Tong
51 Langridge Street
in late September.

Collingwood’s latest office: 51 Langridge Street

Pace expects to complete construction of 51 Langridge
Street by Christmas.

Eleven occupants have pre-committed to about half of the building.

Pace offered the investment fully occupied/with a five
year rent guarantee.

On a fully let basis, the asset is expected to generate net annual income of $1.6 million. Based on the sale price therefore, 51 Langridge Street is trading on a 5.1 per cent market yield.

The SJB Architects designed complex includes ground floor retail, end of trip facilities, basement car parking and communal areas. It is targeted to achieve a 5-star NABERS energy rating.

The site is about a kilometre from the CBD.

Pace DG’s recent spending spree

Pace Development Group founder and managing director Shane Wilkinson featured in the residential property news pages last month, following his $4.5 million acquisition of a 7500 square metre Sorrento block, where he plans to build a holiday home compound for his family.

Offered by Australian Financial Group executive director Malcolm Watkins and his partner, Peter Kerr, this site was sold by Peninsula Sotheby’s Rob Curtain.

In September, Pace paid $4.1 million for a Hawthorn East warehouse on a 478 sqm plot, permit-ready for a nine-storey, 34-unit residential building.

Pace will instead build an office on this site, 9
Montrose Street.

In July we reported, that Pace paid $20 million for a collection of Fitzroy warehouses opposite Martin Strode’s recently constructed, eight-storey, The Lyric apartment complex.

Mr Strode has also developed in Collingwood, a few years ago adding a 17-level apartment building on the historic Yorkshire Brewery site.

Elsewhere in Collingwood this year

Construction of a hotel recently started on the former Travellers suit factory site at 79 Wellington Street, almost adjacent to 51 Langridge Street.

A Veriu inn is earmarked for the suburb, too – within part of Tim Gurner’s 23-33 Johnston Street apartment complex.

Tribe Hotel Group is planning a flagship hotel at 60-62 Langridge Street, not far from the office Pace has just sold.

Tribe bought this site from Peregrine Projects which is proposing a major mixed use complex, next door (64-88 Langridge Street).

The Liberman family’s Impact Investment Group is completing a 12-level office at the corner of Wellington and Northumberland streets, which upon completion, will be part leased to skincare giant Aesop.

US-based Hines is proposing a landmark timber office on a half-acre Collingwood site it bought for $28.5 million in April.

Share or Recommend article