IT IS grand final day, and not only is the premiership up for grabs as the Magpies and the Saints battle it out, but so is a bit of Aussie rules history.
Just around the corner from the MCG, the spirit of footy and a bit of biffo permeates a five-level office building that is to go under the hammer, courtesy of Savills Australia.
The office block was built by the old Victorian Football League, now the Australian Football League, back in 1981 and occupied by them until the mid-1990s. It was the home of the AFL tribunal, and many infamous tribunal cases.
Appropriately enough, a former Saint, Ross Oakley, ruled the roost there as VFL chief, and his spacious office, complete with bar and ensuite, is still there on the top floor. (Poor Oakley's injury-ridden career meant he played only 62 games with the Saints, missing not only the 1965 and 1966 grand finals, but St Kilda's first VFL premiership in '66).
The view from his old office over the MCG, of course, is quite outstanding, and the views in virtually every direction, including across the parks to the CBD, aren't too bad either. Selling agents are Clinton Baxter and Nick Peden.
The building has a large rooftop, which Mr Baxter said was ideal for future development. It is 70 per cent leased to several tenants. "Excellent rental growth is expected," he said.
The property, which will be sold at executors' auction on Thursday, October 28, at 2pm, is expected to fetch a price of at least $9.5 million.
Blood boost
AUSTRALIAN Red Cross Blood Service is on the move, consolidating its head office on one site. The Red Cross has signed on for 3314 square metres at the refurbished 417 St Kilda Rd the biggest leasing deal in the St Kilda Road precinct this year. A central location still counts for something.
The move will allow Red Cross to combine its operations, which are housed in two separate locations on St Kilda Road. The deal was negotiated by Ben McKendry of Colliers International on behalf of building owner Challenger Financial Services.
Colliers declined to comment on the terms of the deal, but the building is believed to fetch rents of more than $260 per square metre.
Hotel expanding
THINGS are looking up for Victorian regional tourism: the state's largest hotel operator, Accor, will add four new venues to its network, and is very bullish.
Another three Accor hotels will come on stream Mercure Horsham, All Seasons Warrnambool and All Seasons Swan Hill before the end of the year, while a fourth hotel, a Mercure in Rutherglen, is in advanced stages of planning.
They join an existing network of 31 Accor hotels across Victoria, but the new kids on the block are all franchise contracts. The Mercure Horsham would be both the largest hotel and the first internationally branded hotel in the Wimmera, said Scott Boyes, Accor's regional manager for Victoria, Tasmania and South Australia.
Despite new hotels coming on the market, hotel occupancies have not only held up, but have increased in most destinations. Mr Boyes said Accor hotels' occupancy had grown by 6.2 per cent in August compared with the same time last year.
He's tipping growth of up to 14.8 per cent for September, with the hotels set to pass the 80 per cent average mark for the first time since 2008. Sport brings them in the spring racing carnival, Tiger Woods at the Masters, while England and Australia will clash both in rugby league and the Ashes.
Projects approved
TALKING about the regions and tourism, election time is near again. Planning Minister Justin Madden was active this week, giving the go-ahead to projects both in Cowes on Phillip Island and in Warrnambool in south-west Victoria.
Two supermarkets in Cowes' main street received planning permits a 4175-square-metre Woolworths supermarket at 119-135 Thompson Avenue, and a Morgan & Griffin supermarket just opposite at 114-122 Thompson Avenue. M&G will be 2330 sq m and will include speciality shops. Construction of both starts early next year.
Meanwhile, in Warrnambool, the city's Gateway Plaza will be redeveloped. Among the modifications are a food court opening to outdoor seating; a 3350 sq m supermarket and new specialty stores, with total additional space of 8560 sq m; and a new east-west mall with returning north-south entry.
Mr Madden said the proposals had been called in from VCAT after the Coast Shire Council had failed to determine the matters.
He gave the approvals after hearing from appointed advisory committees in both municipalities.
It's all about jobs. Mr Madden said the Cowes developments would provide a $36.5 million boost to regional Victoria, and create up to 440 jobs during construction and development, as well as up to 200 ongoing jobs.
And Gateway? A $50 million boost to the local economy, 400 jobs during construction and up to 260 ongoing direct and indirect jobs.
Chic in Bomberland
THE home of the Bombers footy is the flavour of the day is starting to make its mark in helping Melbourne cope with its soaring population. Two chic apartment projects in Essendon, both designed by South Melbourne-based architects RotheLowman, have permits and are set to go.
The first is at 37 Keilor Road and is the brainchild of Essendon-based Trisand Property Group, while the second, at 1003 Mount Alexander Road, is being developed by Trisand in conjunction with Tissot Property Asset Group.
The $55 million Keilor Road project, which rises to seven storeys and comprises 106 apartments and lots of ground-floor shops, got the thumbs up from VCAT.
The project, won by RotheLowman in a design competition, is the first residential building of its kind in Essendon. Principal Shane Rothe said the design was inspired by the surrounding tram and rail connections at the transport hub on Keilor Road and Collins Street. Tram and railway lines dominated the area, he said.
About 1.5 kilometres away at Mount Alexander Road, the $40 million block has 73 apartments across five storeys. The project, which comprises three separate buildings, frames an existing church that will be partially retained and refurbished to include residential apartments within the design.
"The overall project form was sculpted and articulated to reduce visual bulk, while providing a site-specific design response that acknowledges its context and local character," Mr Rothe said.
Building materials were selected to deliver a building of varied materials, textures and finishes. "Distinctive feature-screen elements aim to reflect the unique brick colours of the church building," he said.
Apartments in both projects will range in price from about $350,000 for one-bedders to $550,000 for two-bedders. Construction of both is set to start next year.
Eureka option
INVESTORS will get a chance for a stake in one of Melbourne's most prestigious buildings next month. An office in the landmark Eureka Tower is for sale and is tipped to fetch more than $5.5 million when auctioned on October 21. The auction will be on site at 1pm.
Victorian architect Fender Katsalidis not only designed Melbourne's tallest building but is also the anchor tenant of this office space, occupying four of the five storeys with a new three-year lease.
Nick Dempsey and Ashley Buller of Jones Lang LaSalle are marketing the investment, which has been fully occupied since Eureka Tower's completion in 2006. Quite a crowd is expected on auction day.
The property has a net rental of $459,138 per annum and lots of depreciation benefits. The property is part of Eureka Tower, but is independently accessed from 70 City Road, Southbank, and has a private lift.
Earth turning
THE earth has been turned on Docklands' latest tower and construction is well under way on the $300 million Lacrosse Apartments, located on La Trobe Street at the north-east corner of Etihad Stadium. Charter Hall Opportunity Fund No. 5 is the senior joint venture partner with Morry Schwartz's Pan Urban.
They are building the first of two towers, over two stages. Finishing time is expected to be mid-2012. Stage one comprises 312 residential apartments in an 18-level, high-rise tower, 1291 square metres of concourse level retail space, and 150 podium car parking spaces.
With an average apartment price of $500,000, about 90 per cent of off-the-plan sales have been completed.
Frequently Asked Questions about this Article…
What is the five-level office building near the MCG that’s going to auction and why might it interest property investors?
The article describes a five-level office block built in 1981 by the old VFL (now the AFL) and used as the AFL tribunal offices until the mid-1990s. It’s being sold at an executors’ auction on Thursday 28 October at 2pm and is expected to fetch at least $9.5 million. Key investor attractions cited are its iconic location just around the corner from the MCG, a large rooftop flagged as ideal for future development, 70% current occupancy to several tenants and agents Clinton Baxter and Nick Peden handling the sale.
What does the Red Cross lease at 417 St Kilda Road mean for investors looking at commercial property rents?
The Australian Red Cross Blood Service has signed for 3,314 sqm at the refurbished 417 St Kilda Road to consolidate its head office on one site. The deal — negotiated by Ben McKendry of Colliers for owner Challenger Financial Services — is the biggest leasing deal in the St Kilda Road precinct this year. The article notes Colliers declined comment on terms but the building is believed to fetch rents of more than $260 per square metre, highlighting demand for centrally located, large institutional tenants.
What investment opportunity does the Eureka Tower office on auction offer and what financial details are reported?
An office in Melbourne’s landmark Eureka Tower is being auctioned on 21 October at 1pm and is tipped to fetch more than $5.5 million. The space has a net rental of $459,138 per annum, offers depreciation benefits, independent access from 70 City Road and a private lift. Victorian architect Fender Katsalidis is the anchor tenant (occupying four of the five storeys) on a new three‑year lease. The sale is being marketed by Nick Dempsey and Ashley Buller of Jones Lang LaSalle.
How could Accor’s expansion of four new Victorian hotels affect investors in regional tourism and hospitality property?
Accor will add four new venues in Victoria (Mercure Horsham, All Seasons Warrnambool, All Seasons Swan Hill and a Mercure in Rutherglen), all as franchise contracts joining an existing network of 31 hotels in the state. The article notes Accor’s occupancy rose 6.2% in August year‑on‑year and was tipped to grow up to 14.8% for September, with hotels set to pass an 80% average for the first time since 2008. For investors, this points to rising regional demand supported by major events and tourism.
What regional development approvals in Cowes and Warrnambool should investors watch, and what local economic impacts were reported?
Planning Minister Justin Madden approved two Cowes supermarkets (a 4,175 sqm Woolworths at 119–135 Thompson Avenue and a 2,330 sqm Morgan & Griffin opposite with specialty shops) with construction starting early next year. Warrnambool’s Gateway Plaza redevelopment includes a 3,350 sqm supermarket, new specialty stores and an extra 8,560 sqm of space. The article cites economic impacts: Cowes developments could boost regional Victoria by $36.5 million, create up to 440 construction jobs and up to 200 ongoing jobs; Gateway is forecast to boost the local economy by $50 million, create 400 construction jobs and up to 260 ongoing jobs.
What are the Essendon apartment projects mentioned and what price range and timeline do they offer for investors or owner‑occupiers?
Two Essendon apartment projects designed by RotheLowman have planning approval. The Keilor Road development is a $55 million, seven‑storey project with 106 apartments and ground‑floor shops (approved by VCAT). The Mount Alexander Road project is a $40 million, five‑storey development with 73 apartments in three buildings that partially retain and refurbish an existing church. The article reports apartment prices will range from about $350,000 for one‑bedrooms to about $550,000 for two‑bedrooms, with construction set to start next year.
What should investors know about the Lacrosse Apartments Docklands project and its sales progress?
The Lacrosse Apartments is a $300 million Docklands development on La Trobe Street at the north‑east corner of Etihad Stadium. Charter Hall Opportunity Fund No. 5 is the senior joint‑venture partner with Pan Urban. Stage one comprises 312 apartments in an 18‑level tower, 1,291 sqm of concourse retail and 150 podium car parks, with expected completion mid‑2012. The article notes an average apartment price of $500,000 and about 90% of off‑the‑plan sales have been completed, signalling strong pre‑sales uptake.
What are the main potential benefits and risks for everyday investors highlighted across these property opportunities?
Benefits in the article include strong tenant demand (institutional tenants like Red Cross and anchor tenants in Eureka Tower), expected rental growth for some assets, depreciation tax benefits on certain offices, rising hotel occupancies driven by events, job creation and economic boosts from regional projects, and high off‑the‑plan sales rates on major developments. Risks noted or implied include the uncertainty of auction outcomes, partial vacancy (the MCG‑area office is 70% leased), timelines for construction/returns (projects start next year or finish mid‑2012) and new supply entering markets (new hotels and retail space) that could affect future yields.
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