Packer is filthy on Dan but still fancies Melbourne’s property sector

His development group NPACT is embarking on yet another residential project in Melbourne’s blue-chip eastern suburbs, in a joint venture with the local Chapter Group.

Last year, the joint venture paid Sydney motor-mogul Nick Polites $21.7 million for the Land Rover-Jaguar car yard at 1260-1272 Malvern Road, Malvern, in a deal brokered by Stonebridge’s Andrew Milligan, Julian White and Chao Zhang.

They are now embarking on a six-level project with 40 apartments on the 2600-square-metre site located halfway between Glenferrie and Tooronga roads.

The project, designed by Cera Stribley, follows hot on the heels of another JV between the pair, Maleela Rise in Balwyn, which is under construction.

Chapter Group’s Dean Lefkos said expressions of interest in the project will launch early next year.

The development follows last week’s announcement of NPACT’s joint venture with Orchard Piper at the $400 million One Toorak Place.

In an interview last week on the Rampart website, Packer claimed that Andrews had cost him hundreds of millions of dollars during the pandemic and ruined the state!

Packer did not respond to Capital Gain’s request for comment about his opinion on Victoria’s property market.

Saint or sinner

St Kilda’s Saint Hotel has been a pub for only 30 years but it’s racked up quite a tally of tales in that time.

In its latest iteration, the art deco building is part of the biggest personal insolvency case in Australian history where former banker – now bankrupt – Jon Adgemis had been sunk under $1.8 billion of debt.

The former State Bank at 54 Fitzroy Street, on the corner of Canterbury Road, is opposite the George Hotel and the former St Kilda railway station.

Its scheduled mortgagee auction on December 10 should provide some street theatre. It’s for sale through Cushman & Wakefield’s Daniel Wolman, Anthony Kirwan, Oliver Hay and Leon Ma and is expected to fetch more than $8 million.

Records show Adgemis bought the hotel for $9.35 million in May 2021 from a company owned by former footballer Stephen Silvagni. It got a $4 million facelift before a series of expensive hospitality plays failed to win success in a very difficult market.

In the previous 25 years, it was a favoured haunt of footballers, a sometime venue for designer sales and the infamous location of “no Undies Sundays”, a promotion which offered a free drink to women. Another promotion involved dwarves perched on the bar pouring drink down patrons’ mouths.

Last year, it was touted as the possible saviour of down-and-out Fitzroy Street with Karen Martini’s much-hyped Saint Tavern and Grill but to no avail. The 1150 sq m property is vacant.

Administrators and liquidators are in control of Adgemis’ Public Hospitality Group. This is one of three pubs Adgemis bought in Melbourne alongside the Clifton in Kew Junction and the Vine in Collingwood.

Amazingly, the latter, purchased for $4.75 million in November 2021, is not under the control of administrators.

The Clifton has been on the market since August through HTL Property’s Scott Callow, Andrew Jolliffe and Sam Handy.

The mill

A Sydney buyer has snapped up a laneway warehouse owned by the Poulakis family, paying $5.275 million.

The historic three-level property has been a former soap factory and meat curing warehouse but is currently a bar, Mill Place Merchants. The deal reflected a strong 4.17 per cent yield.

The Poulakis family, which ran luxury menswear retailer Harrolds into the ground, pumped plenty of cash into other property holdings while their suit sales were healthy.

Mill Place, just off Flinders Lane, was one of the smaller buyers, costing $4.02 million in 2015.

Harrolds, established by John Poulakis in 1985, went into liquidation last year owing more than $12 million to staff, the Australian Tax Office and fashion labels, Versace, Balmain Paris, Tom Ford, Stella McCartney and Victoria Beckham.

But in 2016, Mill Place Investments, now controlled by Poulakis’ sons Alexander and Ross Poulakis, paid $34.2 million for 301 Flinders Lane, the then-CBD campus of Victoria University. With the uni long gone, it sold it this year for just $24 million.

Customs House, down the street at No.325-331, was a good buy, costing just $3.9 million in 2001 and now expected to fetch around $25 million.

Cushman & Wakefield’s Oliver Hay, Anthony Kirwan and George Davies negotiated the transaction, which attracted four offers. Hay, with Daniel Wolman and Leon Ma are also selling Customs House which is under offer.

Gym joust

Expressions of interest to buy the three outer suburban properties, owned by Derrimut 24:7 gym operator Nick Solomos, close later this week.

All three properties, in Ravenhall, Thomastown and Derrimut are located in the showroom strips of major industrial precincts and worth a total of about $30 million.

Interest so far has come from other gym operators, but also large-format property developers who are keen to reposition the large sites, according to Stonebridge agent Rorey James, who is handling the portfolio with Dylan Kilner, Max Warren and Chao Zhang.

While a couple of white knights have emerged to rescue the 24-hour gym chain, their jousting hasn’t yet produced a result.

Mortgagee Bizcap, which calls itself Australia’s “most open-minded lender,” reached its limits a few weeks ago.

The Ravenhall gym at 1-8/21 Panamax Road is on eight titles next to a Bunnings on 5304 sq m. It comprises four adjoining properties and includes the gymnasium headquarters

The 3283 sq m Derrimut property is at 20-26 Barclay Road on a 5060 sq m parcel of land, and the Thomastown gym at 1/187-205 Settlement Road covers 3667 sq m on a 7794 sq m site.

Solomos Assets owns a fourth gym at 2-3/151 Bellarine Highway in Moolap which was bought in 2020 for $2 million. It’s not for sale at this point.

Bluebird childcare

A Malaysian-based investor has bought the Bluebird Early Learning Centre in Cranbourne West for $8.5 million.

The deal reflected a yield just under 5.4 per cent – the tightest for the year – an indicator of strong competition for the asset.

The 116-place daycare at 142 Central Parkway attracted five offers – three from Asian capital and two local investors, according to CBRE agent Jimmy Tat, who did the deal with Marcello Caspani-Muto and Sandro Peluso.

The operator, part of the Oxanda Education Group, has a new 15-year lease on the 1740 sq m centre which is on the new Linc housing estate and next door to the Quarters Primary School.

The deal follows the sale of the Mayfield Early Learning Centre at 1A Bernard Street, Cheltenham, which the Arena REIT sold for $9.87 million on a yield of 6.23 per cent.