- Joint venture on 710 Collins Street, Melbourne
- Heritage-listed railway house from the 19th century
- Site valued at $100-125 per June 2020
Abacus Property Group (ASX: ABP) and Walker Corporation will both collaborate on the development for 710 Collins Street in the Docklands.
The property itself is is a heritage-listed former railway house build in the late 19th century known as the Goods Shed. Following a significant refurbishment, the property was turned into a two-level commercial office building back in 2010.
The joint venture’s objective is to design, plan and obtain a development approval that the two parties will jointly own upon completion
Lang Walker AO, Walker’s Founder and Executive Chairman, hopes the development will celebrate the site’s heritage-listed background.
“The acquisition and subsequent redevelopment of 710 Collins Street will provide the opportunity to celebrate the heritage significance of the iconic Goods Shed and deliver a high quality urban design outcome. Our vision for the site will drive continued positive renewal within the Docklands precinct,” said Mr Walker AO
For a total consideration of $56 million, Walker will acquire a 50 per cent interest in the entity that owns the Collins Street property itself. As of June 2020, Abacus valued the site at the $100-125 million range.
Abacus will additionally provide vendor finance for up to five years at 5.5 per cent per annum.
In its present form, the site area is 7,795sqm with a net lettable area of 11,320sqm.
The property enjoys a 100% occupancy rate with the Victorian State government being substantial lessors of the property until 2024. Specifically, the major tenants are the Minister of Finance and the Victorian Building Authority (VBA).
Steven Sewell, Abacus’s Managing Director, is excited about the long-term prospects of the site.
“The partnership with Walker has been identified as one that will unlock the asset’s repositioning potential and create long term sustainable returns through redevelopment.”