Collapsed Harrolds owners have another CBD property up their sleeves

At the time, the family was trying to sell the former Victoria University campus at 301 Flinders Lane for about $35 million. It’s understood they have sold that building to the private Laurus Education group for about $24 million. Ouch.

Now it’s the turn of Customs House at 325-331 Flinders Lane, which just hit the market with a price guide of more than $23 million.

Records show John Poulakis’ investment vehicle Zellvest bought the six-storey building in 2001 for $3.9 million. It was a good buy.

The property is on a bumper 908-square-metre parcel of land, one of the largest on the strip, with more than 3000 sq m of space and soaring ceiling heights of more than four metres. It faces the rear entrance to blue-chip office 333 Collins Street.

Records show Zellvest is now in the hands of Poulakis’ sons, Alexander and Ross Poulakis, who also control Mill Place Investments, the company that paid $34.2 million for the former Victoria University campus in 2016 and $4 million for a warehouse at 2 Mill Place in the CBD in 2017.

Harrolds’ liquidator SMB Advisory’s Andrew MacNeil said last year the companies that owned the buildings were “not owned by entities subject to the liquidator’s appointment. Therefore, they are not available to the liquidator for realisation as part of the liquidation process.”

However, a more recent report shows intercompany loans of $13.3 million were made from Harrolds Logistics to entities controlled by the Poulakis family, and MacNeil was looking to recoup the cash. He did not return inquiries, and Ross Poulakis said he was unavailable to comment or discuss the matter.

Cushman & Wakefield’s Oliver Hay and Daniel Wolman are handling the property but declined to comment. It’s understood they also sold 301-311 Flinders Lane.

Meanwhile, former Harrolds staff have recently revived the retailer’s operations in Sydney.

Harcourt

Dermatologist Rod Sinclair, developer of the “hairy pill”, is offloading a property on Royal Parade in Parkville that he bought in 2021 with plans to develop a new clinic.

Records show a company co-owned by Sinclair acquired Harcourt in 2021, paying Trinity College $3.85 million.

The 100-year-old building at 35-39 Royal Parade, on the corner of Morrah Street, is on a 551 sq m site and expected to fetch about $4.5 million.

Sinclair, who is also a professorial fellow in the Department of Medicine at the University of Melbourne, is renowned for the “hairy pill”, a drug that helps stimulate hair growth.

Sinclair Dermatology has several clinics in East Melbourne, Pascoe Vale and just down the street at 29 Royal Parade.

His plan to partly demolish the 100-year-old building for a new dermatology centre was knocked back by the City of Melbourne in 2022 but approved the following year by the Victorian Civil and Administrative Tribunal.

Construction costs being what they are, it’s back on the market with a permit for redevelopment.

Colliers’ Ryan Milivojac, Philip Heberling and Jozef Dickinson are handling the campaign. It’s across the road from the University of Melbourne and the city’s huge biotech precinct.

Auction action

The Chapel Street shop leased to cult UK spectacle retailer MOSCOT sold under the hammer last week for $2.92 million, with four bidders pushing it beyond the reserve.

The shop and upper floor at 566 Chapel Street, belonged solely to fashion maven Gary Theodore who once co-owned the corner boutique with former business partner Fiona Scanlan.

The two strata-titled units return $180,000 a year in rent, giving it a blended rental rate of more than $1000 a sq m. The sale reflected a yield of 5.99 per cent and a building rate of $16,500 a sq m.

Stonebridge agents Nic Hage, Rorey James and Ian Lam said bidders came from Queensland and New Zealand, with the latter snaring the prize.

Next up on Chapel Street is a property at the Windsor end, which has been solely owned by Scanlan since the Scanlan Theodore fashion partnership split in 2003.

The 367 sq m property at 88 Chapel Street, former home of the Sacred Heart Mission op shop, is now headquarters for high-powered creative agency Howatson & Co, which pays about $210,000 a year in rent.

Lygon Street limber

In Carlton, 279-281 Lygon Street never got to last week’s scheduled auction. The property sold before auction to a buyer sourced through Fitzroy’s Asian Services desk.

The double-storey building fetched $1.678 million, reflecting a high land rate of $13,115 a sq m and a tight yield of 3.45 per cent.

Records show it last changed hands in 1980 for $134,000. The ground floor is leased but the first floor is vacant.

According to Fitzroys’ most recent Walk the Strip report, Lygon Street vacancies have bounced back from their COVID-19 pandemic hit to a healthy 7.5 per cent – well down on the 20 per cent peak.

Fitzroys’ Chris Kombi, Shane Mills and Ben Liu did the deal. They sold 223 Lygon Street in January for $1.51 million and are taking No. 327, leased to Carlton Eyelab, to auction next month.

Uncommon

Co-working office space provider The Commons is making a play for the “wellness” market.

Its new Cremorne space, The Commons Richmond, at 33 Cremorne Street, will devote half its footprint to a health club with a gym, classes, cafe and a bath house.

Developed by Bill McNee’s VicLand, the 18,500 sq m Cremorne office will be The Commons’ 11th location. It has taken 5000 sq m of space with room for 400 workers.

A new office in South Yarra opens early next year. Founder and chief executive Cliff Ho said: “Each new Commons continues to push the boundaries of what a workplace can mean in people’s lives.”

“Wellness” offerings are looming large in the push to lure workers back to the office, but The Commons is the first co-working group to build it into its space.

Vicland’s Jake Steinhart said the office was about 85 per cent leased. Puma Australia has taken 2000 sq m; US tech firm The Trade Desk is also moving in and NAB is opening a business banking centre in the building which is close to Swan Street.

The Commons’ wellness centre will also be open to other tenants and the public.