Tipalea Partners buys 1.1ha site in Alexandria for $24 million

But a shortage in office and commercial space in the Sydney CBD has forced investors and owner-occupiers to circle back into Alexandria, which still has many commercially zoned sites.

Tipalea plans to develop the 6175sq m site it bought at 23 Bourke Road as well as the 5000sq m site next to it at 29 Bourke Street into five boutique hybrid retail/warehouse/office properties ranging from 500 to 2000 square metres. It bought 29 Bourke Street for $13.4 million last year.

“This property is a long-term hold for us, it is well located and in a pivotal location within Australia’s strongest industrial market. We will reposition the estate as a high-quality showroom precinct in line with the more edgy urban surroundings emerging in Green Square,” Tipalea chief executive Scott Spanton said.

“The existing vacancies and short-term leases provide us with the opportunity to unlock value and capture rental growth straight away.”

Flexible leases

Tipalea’s combined 1.1-hectare site is 350 metres to the new Green Square Town Centre.

While apartment development has dominated Alexandria, Tipalea is taking advantage of the site’s commercial zoning to create office and retail space with flexible short- and long-term leases.

Colliers International’s Michael Crombie, who brokered the sale, will also handle the leasing program.

“Brand new high-end showroom space on Bourke Road in the heart of Alexandria is a rarity and we expect it will draw a range of users from retailers seeking the exposure and profile of the Bourke Road location through to creative commercial users like architects and design agencies,” he said.

Tipalea has been ramping up activity lately, buying the whole level 10 floor at 50 Clarence Street in the Sydney CBD last year. The floor will be leased as six individual strata lots.