The Smith Family’s Collingwood sale provides rare development opportunity

Melbourne, 27 May 2014 – For the first time in 16 years, The Smith Family’s Melbourne base in Collingwood is going to the market, unlocking a rare development opportunity in one of Melbourne’s most sought after inner city suburbs.

Located at 73-77 Wellington St, close to the Melbourne CBD and surrounded by eclectic shops and cafes, the substantial holding comprises approximately 1,100sqm of land and features three street frontages.

CBRE’s Jamus Campbell is selling the property alongside Josh Rutman and Mark Wizel. Mr Rutman commented; “This is genuinely a unique opportunity to develop a site with three street frontages within the ‘golden pocket’ of Collingwood, which is bound by Smith, Langridge, Wellington and Stanley Street.”

“With the continued gentrification of Fitzroy feeding down to Collingwood, the property’s proximity to the CBD and the abundance of local amenity will ensure the sale campaign is extremely competitive.”

Currently constructed on the site is a three-level office building featuring an internal net lettable area of approximately 1,550sqm as well as a small portion of warehouse space (circa 346sqm), with 26 car underground car parks.

Mr Wizel noted; “The office space is still in fantastic condition and there remains the option for The Smith Family to occupy the premises in the short term  so not only do you have the chance to secure a premium city fringe site, there is the possibility of holding income for an incoming owner while they achieve a planning permit.”

The Collingwood property is being brought to the market in a forthcoming Expressions of Interest campaign, as it is surplus to The Smith Family’s needs.

Alan Martin of The Smith Family said; “We recognise the property’s potential and realise the best use will involve development given what has occurred in the immediate area.

“We’ve made the decision to use the proceeds from the sale to support and expand our educational programs in Victoria. We’ll also continue to have the same presence in the broader Collingwood, Richmond and Fitzroy communities.”

Due to the quality of the property, Mr Campbell, from CBRE’s City Fringe and Metropolitan Investments team, said the sale was expected to attract strong interest from national and international owner occupiers and developers looking to capitalise on the location and continued gentrification and growth of the Collingwood locality.

“While the lion’s share of Asian capital has been focused on the CBD in recent years, we are now seeing new groups and capital that is less risk adverse looking outside the CBD to the city fringe and well known suburban locations,” Mr Campbell said.

“Over the next 12-18 months we are going to see the suburban landscape change with onshore groups competing with offshore capital for quality assets.”