Jinding Snaps Up Iconic Melbourne Building For $7.28 Million
We are pleased to announce that we have our first foray into the commercial property sector buying an iconic site at 78-86 Dudley Street in West Melbourne for $7.288 million. Jinding CEO Jay Song says the building’s high-profile location, overlooking Flagstaff Gardens and 500 metres from Queen Victoria Market, and its potential for re-development in future years makes it an appealing investment. “This acquisition adds to the diversity within our property portfolio with high potential for a mixed-use project down the track and strong demand for boutique developments in city fringe locations,” Mr Song says. “It’s a significant addition to our current $2 billion residential portfolio, which includes masterplanned communities, the $370 million The Patch in the Wollert Growth Corridor and the $270 million Harriott at Armstrong Creek. “We are focused on opportunities to invest with a long-term strategic view, positioning us to capitalise on future growth in sought-after locations such as this one. This site presented an opportunity for Jinding to value-add through refurbishment or for redevelopment in the longer term.” JLL Melbourne Director, Nick Peden, says the EOI campaign had received more than 150 registrations with six formal offers submitted. There was equal interest from investors and developers showing strong interest in the Melbourne CBD fringe location. “We had huge interest in the site as it ticked a lot of boxes for buyers, including its superb location and the significant rental income derived from an iconic tenant,” Mr Peden says. “The site is right on the cusp of the CBD in West Melbourne, which is an area going from strength to strength. There are several major government-funded infrastructure projects underway such as the $11 billion Metro Rail Development with Arden Station to be located just 1.2km from the site. “In addition the $6.7 billion West Gate Tunnel Development will provide further connectivity to the CBD for West Melbourne with Dudley Street within one kilometre of the tunnel at Dynon Street.” Mr Peden says the West Melbourne area is growing strongly with a number of high-quality residential developments earmarked for the area and due to be completed in the next few years. “There’s currently a pipeline of 2,300 units across residential, build-to-rent and student accommodation in the works, which demonstrates just how popular it is becoming,” he said. “The infrastructure and significant amenity, including Queen Victoria Market, which has 600 small businesses and is three minutes from 78-86 Dudley Street, make it a highly attractive place to live.” The 78-86 Dudley Street site, on the corner of King Street, spans 742sqm and hosts the castle-themed Witches In Britches building, which features a total net lettable area of 1,050sqm, including a stage, dining hall, bar, and back-of-house facilities on the ground floor, with an office and storage areas on level one. The sale is due to settle in February next year.