A GIANT Asian-themed fresh food market and an adjoining bazaar selling clothing and variety goods will be developed on the outgoing Forges of Footscray site, in Melbournes west.
The syndicate of Vietnamese businessmen who in July paid about $16 million for the collection of properties on almost one hectare of land will split the site in central Footscray into two envelopes, divided by Albert Street.
Under the development proposal, discount retailer Forges is expected to occupy a 1500- square-metre piece of the development, retaining its prominent Nicholson Street Mall frontage.
At the rear of the mall, on a site with frontage to Albert and Paisley streets, the variety goods and clothing market will be developed.
On the western side of Albert Street, a fresh produce market selling a comprehensive range of Asian-based ingredients and materials will be established.
Speaking on behalf of the sites new owner, Vinci Carbone director Joseph Carbone said the 8000-square-metre market would trade for at least the next three to five years, until plans were finalised and approved for a larger development.
Because it is in central Footscray, the Forges site is expected to eventually make way for a high-density village of apartments, offices and multi-level retailing.
The Dimmeys company, which owns Forges, sold the prominent Dimmeys Swan Street Richmond store last July to property developer Joel Freeman, who is proposing a nine-level, 89-unit apartment building on land at the rear of the site.
The sell-off by Dimmeys is part of a change in marketing strategy to occupy smaller stores in a greater number of areas.
$7.5m for 400 Collins
THE London & Lancashire Building at 400 Collins Street, which is listed by the National Trust, sold after auction yesterday for $7.5 million $500,000 above the reserve price to a private investor, Peter Russell, through his company Kurrawonga Pty Ltd.
More than 200 people crowded the footpath for the sale, which had generated 170 inquiries.
The building was initially passed in at $6.6 million, but four parties competed to buy the property after the auction, which was conducted by CBREs Mark Wizel and Sebastian Drapac.
Mr Russell, whose property adviser was Hodgson Partnership, said he did not yet have a particular view on what he would do with the building.
I take a long-term view of property. Its my first investment on behalf of my family in Victoria and its a good time to buy commercial property, he said.
We are very respectful of the nature and character of the building and will ensure it will be preserved and enhanced.
The 1927-square-metre, seven-level freestanding office with roof-top terrace the first and second floors are the original 1865 stone building was put to the market for the first time in more than 30 years.
It was sold by interests associated with Melbournes Angliss family.
The transaction was the first public sale of a Collins Street building of its calibre in more than three years.
The building is also on the Australian Heritage Councils Register of the National Estate.
Healthy progress
MAB Corporation is looking for a dentist, or an allied health specialist, to fill the last piece of its massive health and well- being precinct, at the $1 billion University Hill complex in Bundoora.
Earlier this month health group Genesis announced it would develop a $10 million fitness club on land within the precinct, bringing total occupancy at the precinct to about 90 per cent.
The health and wellbeing centre offers specialist medical support, childcare services and beauty and massage services to residents in and around the outer northern suburbs.
MAB is reported to have paid the Royal Melbourne Institute of Technology about $21 million in 2003 for the 104-hectare Janefield Hospital site, most of which is now University Hill, a mixed-use village of housing, offices and shops.
Tag tags flagship
EXCLUSIVE retailer Tag Heuer has chosen the centre of Collins Street to open a new Australian flagship store, according to sources.
Tag Heuer will boot out shoe retailer Florsheim, to occupy a prominent 170-square-metre ground-floor retail space at Challengers 330 Collins Street, on the north-west corner of Elizabeth Street.
A representative from Louis Vuitton Moet Hennessy, which owns Tag Heuer, was unavailable to comment about the speculation when contacted by Capital Gain.
The retailers most popular products are watches, but Tag Heuer also markets mobile phone accessories and jewellery, and the new store is expected to replace a service centre it operates from Rialto.
The outgoing Florsheim space was previously advertised online at about $2350 per square metre by CB Richard Ellis agent Max Cookes, who declined to comment on any part of a deal.
Mitchells consolidates
ADVERTISING mogul Harold Mitchell is building a new $30 million company headquarters on the prominent South Melbourne site his agency has occupied since the late 1980s.
The media specialist, who established Mitchell Communication Group in 1976, has demolished a two-storey building his agency previously occupied at 101111 York Street, and will replace it with a five-level, 5100-square-metre A-grade office, with several outdoor balconies and city views.
The new, headquarters, designed by architects Bruce Henderson, will consolidate Mitchells staff from the five offices they currently occupy around South Melbourne, including space it has temporarily leased for the period of construction, opposite the nearby South Melbourne Market.
Mr Mitchell, who is also the chairman of the Melbourne Symphony Orchestra, told Capital Gain Our people are our greatest asset and its very important to me that they have a workplace that they both enjoy and are proud of.
The new offices environmental credentials include grey water harvesting (the collection of waste water to be used in flushing of toilets), chilled beams (chilled water is passed through piping that is embedded in the concrete slabs and this helps to keep the building cool), solar power, and high performance glass (this allows excellent light into the building but reduces heat gain).
Construction of the new office is expected to be complete late next year.
Frequently Asked Questions about this Article…
What is being developed on the former Forges of Footscray site and when will it open?
The site will become a large Asian‑themed fresh food market plus an adjoining bazaar selling clothing and variety goods. The plan splits the site across Albert Street: Forges (the discount retailer) is expected to retain a 1,500‑square‑metre shop on Nicholson Street Mall while an 8,000‑square‑metre fresh produce market and a separate clothing/variety market will operate from the rear. The syndicate says the market will trade for at least the next three to five years while plans for a larger development are finalised.
Who bought the Footscray properties and what are their long‑term plans for the site?
A syndicate of Vietnamese businessmen paid about $16 million for almost one hectare of properties at the Forges site. Speaking for the new owner, Vinci Carbone director Joseph Carbone indicated the current market is a medium‑term use and that, because of its central Footscray location, the site is expected eventually to make way for a high‑density village of apartments, offices and multi‑level retail when formal plans are approved.
How might the Footscray development affect everyday investors interested in retail or property in Melbourne's west?
The development offers short‑term rental and trading opportunities through the 8,000‑square‑metre market and the retained Forges store, while signalling longer‑term upside because the central location is earmarked for higher‑density redevelopment (apartments, offices and multi‑level retail). For investors this means potential income in the near term and capital‑growth prospects if the site is rezoned and redeveloped later.
Why did Dimmeys sell its Richmond Swan Street store and what does that indicate about its strategy?
Dimmeys sold the prominent Swan Street Richmond store last July to developer Joel Freeman, who proposes a nine‑level, 89‑unit apartment building on the land behind the site. The article says the sell‑off is part of Dimmeys’ change in marketing strategy to occupy smaller stores in a greater number of areas, suggesting a shift toward a more dispersed, lower‑footprint retail model.
What was significant about the sale of the London & Lancashire Building at 400 Collins Street?
The heritage‑listed London & Lancashire Building at 400 Collins Street sold at auction for $7.5 million — $500,000 above the reserve — to investor Peter Russell via Kurrawonga Pty Ltd. The seven‑level, 1,927‑square‑metre building was on the market publicly for the first time in more than 30 years and represents the first public sale of a Collins Street building of that calibre in more than three years. The buyer said he takes a long‑term view and intends to preserve the building’s character.
What is happening at MAB Corporation’s University Hill precinct and are there investment opportunities there?
MAB Corporation’s $1 billion University Hill mixed‑use village in Bundoora is building a health and wellbeing precinct and is seeking a dentist or allied health specialist to fill the last commercial space. Health group Genesis has committed to a $10 million fitness club, bringing total precinct occupancy to about 90 per cent. The precinct comprises housing, offices and shops on the former Janefield Hospital land.
Is Tag Heuer opening a flagship store on Collins Street and what does that mean for retail leasing in the area?
Sources say Tag Heuer has chosen central Collins Street for a new Australian flagship, expected to occupy a prominent 170‑square‑metre ground‑floor retail space at 330 Collins Street, replacing shoe retailer Florsheim. Tag Heuer’s move onto Collins Street highlights continued demand for high‑profile retail locations and could push interest in premium leasing in the precinct; the outgoing Florsheim space was previously advertised at about $2,350 per square metre.
What sustainability and design features are included in Harold Mitchell’s new $30 million headquarters and why might that matter to investors?
Harold Mitchell is building a five‑level, A‑grade 5,100‑square‑metre headquarters in South Melbourne with environmental features including grey water harvesting, chilled beams, solar power and high‑performance glass. For investors, such features can enhance tenant appeal, reduce operating costs and increase the long‑term attractiveness and value of modern office stock.
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