A PROMIMENT property in Melbourne's Southbank precinct with development potential is up for grabs, through an Expressions of Interest campaign by agents Kliger Wood Real Estate.
Kliger Wood expects $10 million plus bids for the property located at the south west corner of
Comprising two buildings, the two level separately titled buildings have a net lettable area of 2,828 sqm on a land area of 2,642 sqm.
The building tenancies are underwritten by Incitec Pivot which occupies all the office space with the corner retail showroom area leased to trading company Tai Mao Australia Pty Ltd.
There is also an on site car park for 47 vehicles and the net building income is currently $603,162.
The property has frontages of 50.77 metres to
All leases include a redevelopment clause, the lease to Incitec Pivot includes a redevelopment notice that can be given to the tenant at the expiry of the first five years with the lease commencing from November 01, 2007 with a one year notice and clause to Tai Mao Australia is exercisable after October 31 2008 by giving the tenant six months notice.
Kliger Wood selling agent Eugene Wood said that the property offers a strong initial cash flow as a fully leased commercial office investment with future redevelopment potential.
Wood said the flexible zoning encourages high rise residential or commercial development to support the city function and local area.
And he added that the site flexibility has potential for a hotel, residential or commercial tower or a mixed development.
“There are a number of major holdings in this precinct, while the Eureka Tower and new Freshwater Place developments are diagonally opposite as are the head office of the Herald and Weekly Times, the ABC and it abuts the Arts precinct.
“The prominent BMW dealership and headquarters is also immediately opposite. This property offers huge redevelopment potential or a prime investment combined with significant upside in the medium term,” Wood continued.
“Our expectation is that with the significant high profile position of this property, the tightly held nature of the immediate precinct and the potential for future commercial and or residential development that this Southbank property will attract offers in excess of $10 million plus,” Wood added.
Expressions of Interest will close Friday March 28.
Australian Property Journal
