The Reject Shop co-founder Ronald Hall has made a whopping profit after his inner Melbourne SEN Radio building sale to local developers for almost $30 million.
The 3025-square metre L-shaped site at the eastern end of Swan Street in Richmond will make way for a mixed-use retail and residential development in one of Melbourne’s emerging apartment hotspots.
Property records show Mr Hall, who founded The Reject Shop with John Sinister in 1981, took full ownership of the two-storey office-and-warehouse building and a car park in January 2003 for $1.82 million.
Before that he jointly owned the property at 471-479 Swan Street and 2-10 Belgravia Street with ex-Victorian premier Jeff Kennett’s former golf promotion company Fairway Partners.
The new buyers are Ross Pelligra, chairman of Pelligra Group, and Robert Brij, director of ResiCommercial.
The site does not have a permit but is zoned for mixed-use commercial and residential with nearby projects approved for up to 14 levels.
Next door is a proposed Lendlease development of between six and nine levels.
The price was not disclosed but sources put the deal in the “high $20 millions”.
Mr Pelligra, who this year acquired the famed Franco Cozzo furniture store in Footscray for about $7 million, said he would aim to deliver a “vibrant new workplace bringing more jobs and new business to Swan Street, Richmond”.
Mr Brij, who will manage the development, said the site ticked all the boxes.
“It is 50 metres from Burnley train station, has a tram stop on its doorstep, 300 metres from the Monash Freeway, is a stone’s throw away from the MCG, Rod Laver Arena and some of Melbourne best, restaurants, bars and nightlife, and three kilometres from the CBD.
“Our aim is to deliver a desirable destination for local residents to eat, work and live,” he said.
SEN Radio, part of ASX-listed Pacific Star Network, occupies the office portion of the site but will have to find a new home when its lease expires in 2022.
The warehouse portion is leased to Supply and Demand Pty Ltd until June next year.
The sale was negotiated by Gross Waddell’s Andrew Thorburn and Rick Silberman of Burgess Rawson, who received eight offers and more than 200 inquiries from investors, owner-occupiers and local and offshore developers.
“We’ve sold a number of sites close by and its always encouraging the level of inquiry received,” Mr Thorburn said. Mr Silberman said the sale “bodes well for owners looking to capitalise on sites with future redevelopment potential”.
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Written by Larry Schlesinger, Australian Property Journal
SEN Radio building sale
SEN Radio building sale