Real Estate

south melbourne commercial property sells for a staggering 32 million

Written by The ReReport

A South Melbourne office building at 210 Kings Way was purchased by a local investor for $32.01 million.

A LOCAL investor has splurged a whopping $32.01 million on a South Melbourne commercial property.
The property at 210 Kings Way was built in 1973 for Telstra and was redeveloped in 2000.
It has been a car showroom for Mercedes and Rolls Royce and was once owned by prominent Melbourne businessman “Diamond” Joe Gutnick.
Now, the fully leased office space returns $1.531 million per year and is home to companies including PETstock, technology services company Datacom and science and tech advisers QinetiQ.

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The office space returns $1.531 million per year.

Lemon Baxter director Chris Curtain said the 2765sq m site’s long-term development potential for a 12-level office space attracted lots of buyers.
Mr Curtain said he received more than 150 inquires for the building from local investors, developers and overseas buyers and had offers placed by six parties.
“It’s in close proximity to the CBD and there hasn’t been any new office buildings for 20-odd years,” Mr Curtain said.
“The land is finite, they’re not making any more.”

It has some pretty impressive views.

An artist’s impression of the impressive 12-storey building that may one day replace the current property.

Mr Curtain said the site was in a mixed use zone which allowed for up to 12 levels to be built, while its neighbours fell into a Commercial 2 zone allowing for a maximum of six storeys.
He noted it was one of the only large development opportunities remaining in South Melbourne.
“It’s in a cracking location and office buildings of the future are all about getting good staff and they want safety, security, access to trams and good views,” he said.
Plans designed by Hayball Architects for a 12-storey office building were included in the sale.
The buyer was likely to wait until three developments around the area were complete before potentially redeveloping the site, according to Mr Curtain.

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