Busy developer Goldfields Group is close to putting its foot on a strategic Punt Road property in Melbourne owned by Jewish Care Victoria in a deal worth around $35 million.
Goldfields, which has a major commercial office under way in nearby South Yarra, is in due diligence to purchase Jewish Care’s old four-level aged care home on the corner of Punt Road and Raleigh Street in Windsor.
The aged care organisation moved to sell the property in late June despite intense disruption from the coronavirus pandemic.
Uncertainty from COVID-19 and Melbourne’s lockdown is squeezing activity in the commercial real estate market, but a surge of deals is expected towards the end of the year as suppressed buyer demand from easing restrictions meets a flood of listings.
Jewish Care has replaced its Punt Road facility with the nine-level Hannah and Daryl Cohen building to the south. Residents started to move into the new building in April.
The Punt Road site, which includes a large open air car park, was marketed by Colliers International with a price tag between $30 million and $40 million.
Neither Jewish Care or Goldfields would confirm price details due to confidentiality.
The transaction is Goldfields’ second purchase in just 11 months in the immediate locality. It struck an off-market deal last October – worth $19.1 million – for a single-storey building at 587-593 Church Street in Richmond, in one of the city’s hottest commercial property postcodes.
The Church Street property is leased to Matt Blatt Furniture with two years remaining on the lease and two further three-year options, limiting its near-term development potential.
The group’s signature 24-level A-grade office tower at 627 Chapel Street is under construction and due for completion in October 2021.
The bold $300 million commercial tower is sandwiched between Larry Kestelman’s luxury $700 million Capitol Grand apartment complex and the Olsen Hotel on Chapel Street, directly opposite the Como complex.
Goldfields’ chief operating officer Lachlan Thompson confirmed the group was in exclusive due diligence for the Jewish Care site.
“We’re very excited at the prospect of delivering a 260-unit residential and mixed use development in this strategic location,” he said.
Goldfields recently partnered with IDA Property Group and a wealthy family investment house to launch a $100 million housing consortium targeting east coast projects.
Colliers International agents Daniel Wolman, Peter Bremner and Rachael Clohesy, who managed the Jewish Care campaign, declined to comment.
The 4293 square metre Punt Street building is on a large 4300 sq m site.
Organisations related to Jewish Care have occupied the large block, which stretches between Punt Road and St Kilda Road, since 1848 in the early days of Melbourne’s settlement.
Jewish Care declined to comment.