Hotel developers tipped to drive interest in Melbourne car park
A Melbourne car park to be sold by the family who have owned it for 30 years could fetch as much as $30 million – that’s more than $95,200 for each of its 315 car spaces.
Investors and developers are expected to vie for the prominent 1270-square-metre site at 380 Flinders Street, which has potential for views across the Yarra River to Southbank and Crown Casino.
Daniel Wolman, Matthew Stagg and Oliver Hay, of Colliers International, expect to field inquiries from investors who want to capitalise on the scope for future development.
The seven-level car park is managed by Secure Parking. The top floor is leased to telecommunications company AAPT and there is also ground-floor retail space.
“Car parks are a scarce and tightly held asset class,” Mr Stagg said. “They are popular because they are a low-maintenance investment that generate strong long-term cash flow.”
The car park has access from Flinders Street with two more access points are in Foxton and Tavistock lanes.
One of its three street frontages includes a 36-metre stretch that is one of the biggest in Flinders Street. The Collins Street financial precinct, Bourke Street Mall retail precinct and Flinders Station are nearby.
Mr Wolman said the site would become one of Melbourne’s most sought-after locations for a luxury or boutique hotel. In the meantime, the current tenants offered a strong income while a new owner waited for plans and permits.
“The property is located next door to the former Fletcher Jones site at 1 Queen Street, which has a permit for 18 levels on only 746 square metres,” he said.
Agents expected to receive competitive bids from long-term passive investors as well as developers, Mr Wolman said.
