WeWork – a start-up “experiment” established six years ago in Manhattan – is understood to be leasing a Melbourne CBD building that made headlines last year when the landlord sensationally locked out long-standing occupant, Roy Morgan Research.
The provider of shared, trendy, office space, is speculated to be renting about 7000 square metres at the former Bank of Tokyo House building at 401 Collins Street, which fund manager Impact Investment Group, backed by the Liberman family, bought from businessman Gary Morgan in early 2014.
By late last year, Impact and Mr Morgan were engaged in a bitter tenancy dispute, culminating in the landlord, without notice one weekend, deactivating security passes, changing locks and employing security guards to prevent Roy Morgan Research staff from entering the building.
An emergency Supreme Court hearing led to Mr Morgan regaining entry into the building he owned since 2000. However, it was reported earlier this year that both parties sought to end the 10-year leaseback negotiated when the building sold for $32 million. An IIG representative and Mr Morgan were unavailable to comment about the deal, which was reported by several city leasing agents.
On its website Roy Morgan Research still lists 401 Collins Street as its Melbourne headquarters.
Young WeWork executives were in Sydney last month opening the global group’s 99th office in Martin Place after a $20 million fit-out.
$10.8m Tally Ho sale
A big mixed-use building at the Burwood Highway entrance of Melbourne’s first master-planned suburban business park, Tally Ho, has sold for $10.8 million.
The double-storey office and retail asset at 1 Lakeside Drive occupies a 5435-square-metre corner parcel with 101 on-site car parks. On a fully let basis, according to selling agency JLL, the investment could return almost $890,000 in annual rent. The building’s tenant list includes ANZ and Dallas-headquartered cosmetic company, Mary Kay.
A building in the Tally Ho business park, Burwood East, sold for $10.8m. Photo: Supplied
Peter Sprekos and Lincoln Reynolds sold the asset to a Malaysia-based investor who plans to refurbish vacant space before reletting. The vendor was a private investor.
Developed more than two decades ago, Tallo Ho contains 17 commercial buildings across 26 hectares on the south-east corner of Springvale Road.
One of Tally Ho’s largest sales occurred in mid-2015, when Canberra builder Dennis Millen sold 13 Vision Drive for $22 million – more than twice the price he paid General Property Trust in a downturn six years earlier. This double-storey, 6400-square-metre office occupies a 1.2-hectare block.
Pacing back to Mentone
Pace Development Group has paid $4.7 million to buy an empty retail space on the ground level of a Mentone apartment complex it built and sold-down a few years ago.
The vacant, 2245-square-metre asset at 86-88 Balcombe Road has been occupied in recent years by two separate, failed, gym businesses. The space has the potential to be subdivided before being leased or sold again.
CBRE’s Nic Hage, Nick Lower, Rorey James and Tom Tuxworth represented Pace, which has in recent years been an active high-density apartment builder. In June it paid $7 million for a development site – two adjoining properties between 552-558 High Street Road, Mount Waverley, in Melbourne’s south east.
Salta execs offload in Tullamarine
Two executive directors with Salta Property have sold a passive investment at 81-85 Lambeck Drive, Tullamarine, for $3 million.
The 5800-square-metre site includes 68 car parks and a high-tech office area with an internal area of 1995 square metres. It was marketed with a short-term lease, by Andrew Waddell and Andrew Thorburn of Gross Waddell, with Anthony Carbone of CVA, and sold to an owner occupier after also being marketed to investors.
Controversial club sale
A controversial Hawthorn nightclub recently investigated by Victoria Police after two drug-related deaths, is being sold.
The Room 680 business and premises are, combined, expected to sell for more than $5.5 million.
In August police said the club was part of an investigation after a 17-year-old St Albans boy died two months after a 19-year-old Deer Park woman.
Spanning 1026 square metres on the second level of 680 Glenferrie Road, the licensed bar is capable of accommodating 900 patrons and has a 7am closing time.
Gross Waddell’s Alex Ham and Jonathon McCormack, with CBRE’s Will Connolly and Scott Callow, expect interest from hospitality related owner occupiers. Other suitors are investors, who might consider dismantling the high-end fitout and renting out space in parts or as a whole.
Glenroy Woolworths selling
Another supermarket asset has sold, this time in Glenroy.
The 5569-square-metre land holding at the corner of Geum and West streets, includes a 2101-square-metre supermarket and 98 on-site car parks. The supermarket has been occupied by Woolworths since 1979. Though no sale price has yet been disclosed, the asset returns annual rent of $442,518. Assuming a yield of 5 per cent, a value would be about $9 million.
CBRE agents Justin Dowers, Kevin Tong and Mark Wizel marketed the site’s “endless future development potential” for a “medium-density project” but declined to comment when contacted.
The transaction comes after a Brighton-leased Woolworths supermarket recently sold for $32 million on a yield of 3.8 per cent. In Nagambie an investor paid $8 million, on a 6.1 per cent yield, for a small shopping centre.
Earlier this month, a near-new shopping centre in Coburg North, anchored to supermarket giant Coles, which was also the vendor, exchanged for $38 million against initial price hopes of about $30 million, reflecting a 4.9 per cent yield.
$12m+ for South Yarra block
An 890-square-metre development site in South Yarra’s Royal Botanic Gardens precinct has sold for about $12.5 million, reflecting a rate of $14,000 per square metre.
The St Arnaud complex, a 54-room boarding house at 93-103 Park Street, was marketed as a renovation rescue or new-apartment building site. Gross Waddell’s Michael Gross and Jonathon McCormack marketed the historic building with RT Edgar’s Jeremy Fox.
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