- Make Ventures pays circa $17.5m for industrial site -
March 26, Melbourne – Melbourne based investor/developer Make Ventures has earmarked a CBD fringe site for its build-to-rent-to-buy concept with the acquisition of a Kensington industrial property for circa $17.5 million in an off-market deal brokered by Dawkins Occhiuto Director Chris Jones.
Currently standing a sawtooth factory of 2461 square metres, the near 4000 square metre, 88-96 Stubbs Street site lends itself well to development with mixed use zoning, two titles and street or laneway frontages on all sides.
Mr Jones said the property was sold at more than $4300 a square metre and subject to a three year lease, with two years to run, to 40 year tenant, Flexible Drive Agencies, at $243,586 per annum net.
He said Make Ventures Managing Director, Kris Daff, had sought a property that would facilitate the development of a relatively new build-to-rent-to-buy concept in partnership with the model’s designer, Assemble.
The proposed development, Mr Jones said, would be Make’s second project in association with Assemble following the partnership’s first foray into the build-to-rent sector at 393 Macaulay Road in Kensington.
Aimed at owner-occupiers the Assemble model involves taking a five year lease prior to the start of construction with the opportunity to buy the home at the end of the lease. Both the rental cost and the purchase price are agreed up front.
Mr Jones said the market for apartment development remained strong despite some conversions or reassignments of apartment projects to office use to sate an arguably stronger current demand for boutique office space on Melbourne’s CBD fringe.
“We have seen a remarkably vibrant apartment market over recent years driven by exceptional population growth and that same driver has been behind a somewhat more lucrative recent shift to office for developers.
“Those twin drivers have seen the development community scouring fringe locations for sites and particularly industrial sites which, at some point, will lend themselves to office and/or residential development.
“In that context Make Venture’s purchase looks to be an astute and timely acquisition,’’ Mr Jones said.