Luxcon Developments intends to create a prestige apartment complex out of an East Melbourne building it is picking up off-market for c$30 million opposite Fitzroy Gardens.

The nine level B-grade office on the site had been owned by Run Property founder Nathan Cher via Yentaprises Pty Ltd, since 2002. The purchaser is also acquiring it under a company name – Address Melbourne Pty Ltd – registering a caveat in late March.

It is already promoting the proposed redevelopment of 372-380 Albert Street as The Address, and inviting expressions of interest from buyers on its website.

A permit is expected to be lodged, with Luxcon anticipating a completion date of end-2021.

The Sydney developer has chosen one of Melbourne’s most exclusive suburbs to make its mark; 13 years ago a $20m unit at 150 Clarendon Street sold off-the-plan setting a Victorian record for a flat.

More have traded for eight figure sums since then.
Salta founder Sam Tarascio’s full-floor penthouse, also at 150 Clarendon Street, is speculated to be worth well in excess of $50m, according to sources.

The sale of 372-380 Albert Street comes five months after Queensland developer Pask Group paid the Royal Australian and New Zealand College of Obstetricians and Gynaecologists $22m for its East Melbourne headquarters, also in the street and opposite Fitzroy Gardens.

That 1533 square metre parcel, 254-260 Albert Street, contains a heritage building, College House, which can’t be demolished. However the zoning allows for the airspace to be replaced with a structure of about 14 floors.

The RANZCOG site is next door to The Eastbourne, a high-end residential complex co-developed by Sydney’s Mirvac and Freemasons Victoria in place of Dallas Brooks Hall.

One of this generation’s most significant East Melbourne prestige apartment projects, 150 Clarendon Street, was constructed by Salta on the former Mercy Maternity Hospital immediately following the 2007 Global Financial Crisis.

It contains 88 oversized flats – despite the builder being permitted to construct more.

Newsworthy at the time, entry level (one bedroom) units came with seven figure price tags.

Coincidentally, the sub-penthouse which sold for $20m in this complex off-the-plan – was relisted with $46m price hopes a year ago this week – later reduced to $36-$39.6m before being withdrawn in August.

Source: 
Australian Financial Review
Marc Pallisco
19/05/2020