My Melbourne Real Estate

Commercial properties may be frequently passed in at auction, but many are selling within two to three weeks, says a leading Melbourne auctioneer. David O’Callaghan, principal of O’Callaghan Commercial and a contracted auctioneer for six other commercial agencies, said despite the apparently high pass-in rate, post-auction sales meant the sales rate was comparable to that of the first six months of last year. Mr O’Callaghan said that from January to June last year, 14 – or 63.6 per cent – of the 22 properties he auctioned sold at auction, with more selling soon after, bringing the tally to 72.7 per cent. In the first six months of this year, just seven – or 25.9 per cent – of the 29 properties he auctioned sold under the hammer. “But taking in the properties sold immediately after the auction (regarded as within two to three weeks) another 13 of the properties sold, which results in a very creditable clearance rate of 74 per cent,” he said. The seasonal peak for the auction of commercial properties is in July and August. “There is no doubt that we have been through a sustained trough of negative buyer or investor sentiment. However, markets tend to work themselves out and that is what I anticipate will happen over the second half of the calendar year,” Mr O’Callaghan said. MOVEMENT ON CITY FRINGE Richmond’s Botanicca 8 development site has sold for $6.1 million to Pacific Developments, says Colliers International. The Melbourne-based developer, which is part of the Pacific group of companies, plans an immediate start on an office building on the 4499sq m site at 572-576 Swan St. The site has a planning permit for a four-storey, 8322sq m office building with 207 car spaces over two basement levels. It is part of the 4.5ha Botanicca office park. Colliers International’s Peter Bremner and Jeremy Gruzewski, who negotiated the sale, expect the finished product to have a value of about $40 million. Investa Property Group was the vendor. Mr Bremner said the sale was the first office development to be sold on the city fringe site. Colliers has been appointed leasing agent. Leasing director Rob Joyes said he had tenants ready to commit to two floors before the property was officially listed. Colliers’ research shows office vacancy in the inner east was 4.5 per cent, while on the city fringe it was 5.4 per cent. ARCHITECTS’ OFFICE FOR SALE The Melbourne CBD home of architecture firm Denton Corker Marshall has been listed for sale through CB Richard Ellis. The 1632sq m, seven-storey building, at 51 Exhibition St, has been home to the award-winning company since 1986. Denton Corker Marshall designed the Melbourne Museum, 101 Collins St and the Melbourne Convention and Exhibition Centre. CBRE’s Sebastian Drapac and Mark Wizel, who will manage the campaign, said the firm’s founding partners needed to separate their assets because of new directions in the practice. The firm would take an initial seven-year leaseback over the building’s upper floors at a rent of $320 a sq m. The other tenants are Anibou Furniture and Sean Godsell Architects. Mr Drapac said the building was surrounded by prominent office towers, such as 101 Collins St, as well as fashion labels and restaurants. The property will be auctioned on July 29 at 12.30pm. SPOTLESS IS MOVING HOUSE The Spotless group has signed a new 10-year lease at 549 St Kilda Rd. Spotless is moving its head office from 350 Queen St in the CBD to the 9545sq m St Kilda Rd building. Colliers office leasing director Ben Christie, who negotiated the lease, says it is the biggest St Kilda Rd deal… [...]