Podco Clarendon Street Co-Investment Fund
Clarendon Street, South Melbourne
Taking an entire block of prime South Melbourne Real Estate, 328-362 Clarendon Street, 49 & 55-69 Emerald Hill Place and 244-246 Park Street, were acquired in August 2015 for $27.5 million.
Features at the time of purchase included:
- Site area of approximately 2,761 square metres.
- A row of 15 terraces centrally located in the Clarendon Street Shopping Precinct. Comprising of 27 individual tenancies (15 retail shops, 2 office tenancies and 10 residential tenancies).
- Island site 100% leased to diverse tenants that include 15 retail, 2 office and 10 residential premises.
- Four street frontages on Clarendon Street, Park Street, Emerald Hill Place and Bank Street.
The original investment strategy highlighted the need to:
Remix tenancy blend.
Seek rent reviews at higher market levels when negotiating lease extensions or at expiry stage.
Undertake planning approval for sub-division of the shops and residences into separate titles to add value and re-sale flexibility.
Embark on an exit strategy selling down allocated shops, offices and residences once re-leasing stage complete. Specifically attracting retail investors where there is significant investor demand.
|Purchase Price (12 lots)||$26.25 M|
|Purchase Price (6 lots sold)||$9.10 M|
|Gross Realisation (6 lots sold)||$16.88 M|
|Value of Remaining Lots (6 Lots)||$20.35 M|
|Est Project Realisation (12 Lots)||$37.20 M|
|Equity Raised||$16.10 M|
|Equity Returned||$8.75 M|
Achievements and performance to date
Currently seven of the terraced commercial properties have been sold since the subdivision was approved. The gross sales proceeds on these properties total $16.875 million – a gain of 86% above their original cost.