3538sqm Cremorne site to fetch at least $40m

October 11, Melbourne – Teska Carson is marketing a significant commercial development site of close to an acre with dual street frontages and a substantial holding income at Cremorne on the doorstep of Melbourne CBD.  

According to marketing agents, Matthew Feld and Luke Bisset, favourable zoning and a multi-storey height precedent allows significant scope for commercial redevelopment of the 31-53 Cremorne Street property.

``The property presents an exceptional opportunity for a large scale, multi-level commercial development with basement parking (STCA) just two kilometres from Melbourne’s CBD,’’ Mr Feld said. 

He said any such development would be facilitated by access from two street frontages over 69 metres and be able to take advantage of potential views from East Melbourne, through the CBD and across the Botanic Gardens to Port Phillip Bay.  

Mr Feld said the purchaser would also have access to a substantial holding income, including several leases with termination clauses, currently returning around $1.3 million per annum.

Currently comprising three, single level, buildings totalling 3153 square metres of GLA, the property is located in the heart of Cremorne and within easy reach of Richmond railway station and trams for a ten minute ride to the CBD, and within walking distance of Swan Street shops, restaurants and cafes. It is also within close proximity of major road networks including CityLink, the Monash Freeway, and Punt Road,

Mr Bisset said the popularity of Cremorne had been underscored by its adopted portrayal as Melbourne’s Silicon Valley following an influx of major IT and creative tenants.

``Melbourne’s recent population growth has driven a high level of commercial development in the Cremorne precinct and that has included unprecedented demand for space from a wide range of tenants including IT and the creative industries,’’ Mr Bisset said.

He said he expected a strong market reaction from developers and investors looking to capitalise on the popularity of Cremorne and the ongoing demand for non-CBD office space.

Mr Bisset said purchasers would also be fully cognisant of the rarity of the opportunity to capitalize on the dwindling number of options for inner suburban commercial tenants.

``Properties such as this, in such popular precincts and so close to the CBD, are becoming increasingly rare as the demand for inner city assets intensifies,’’ he said.

Cremorne lies in the south-western corner of Richmond and adjacent to Melbourne’s premier sporting facilities and parklands, including Rod Laver Arena, the MCG, the Royal Botanic Gardens, and the Yarra River.

Mr Feld said the property’s key attributes included:

• Unrepeatable land holding with substantial street frontage; 
• Strong holding income;
• Two street frontages;
• Excellent access to shopping, public transport, and the CBD; and,
• Close proximity to major road networks:

The property will be sold by expressions of interest closing Wednesday, November 3.