Frankston's Peninsula Centre for sale... again

EIGHT months after Frankston City Council deferred plans to build the multimillion-dollar Frankston Safe Boat Harbour, city developer Asian Pacific Building Corporation has decided to offload the area's most prominent property.

In doing so, Frankston's most ambitious privately proposed redevelopment - the $50 million-plus Peninsula Centre - may be no more.

The distinguishing 12-level building at 435 Nepean Highway - once described by comedian Barry Humphries as "the worst building in Australia" - is for sale with price expectations of between $13 million and $16 million.

Now an 8300 square metre ageing office, the asset is being sold with a permit for a mixed use redevelopment with shops, apartments, conference facilities and five star hotel rooms.

APBC's revamp has been the most ambitious privately proposed redevelopment in the bayside suburb since the economic downturn, and is considered vital in re-inventing the suburb as a relevant commercial hub, as per the government's Melbourne@ 5 Million planning policy.

But now, APBC managing director Will Deague says the Frankston tower may also suit an office, or education centre.

He said the company decided to sell Frankston to focus on its high-end "art series" hotel business.

"Frankston was never planned as an art series," Mr Deague told The Age, adding that interest was also expected from operators considering redeveloping the site into something like Glen Waverley's successful Novotel facility.

APBC paid $11.2 million for the Grollo-built Frankston building in May 2007 and appointed boutique architect Rothelowman to redesign it.

At the time of purchase, the building had been earmarked for a high-end apartment redevelopment, with a pre-sale registration campaign selling out almost all the proposed flats. Nichols Crowder selling agent Geoffrey Crowder said he expects interest from developers revisiting a full residential proposal.

He is marketing the site conjunctionally with CB Richard Ellis' Andrew Dawkins and Mark Wizel.

The decision to sell its Frankston property follows a year of property reweighting for APBC. It's also expecting about $8 million for the Airlie mansion at 452 St Kilda Road and $4 million from the sale of shops beneath a hotel it built on Airlie's side yard.

It recently withdrew from sale its $110 million Kings Business Park in Southbank.

In March the Frankston City Council deferred a decision to develop the Frankston Safe Boat Harbour proposal for between 12 and 18 months, after no conforming tenders were received.

The safe boat harbour was to have been located at Olivers Hill and incorporate 300 permanent wet berths, 400 dry berths, five public launch ramps, shops, restaurants and a hotel.

Finally being developed

ELEVEN years after the University of Melbourne sold its former Early Childhood Development School campus to builders, the prominent Kew building finally looks set to be redeveloped.

The Madden Street campus, in the suburb's ritzy Studley Park precinct, has been sliced and diced and sold several times over the past decade.

At one stage retirement village operator Primelife controlled the site, with plans to redevelop the main imposing existing brick building into a 98-unit aged care facility, Carrington Square.

The University listed the campus for sale in August 1999 along with another Kew site at the corner of Carson Street and Studley Park Road.

At the time, the Madden Street campus land areas measured 4973 sq m , stretching from 2-12 Madden Grove.

Now, a 3502 sq m block, 6 - 12 Madden Grove is being offered for sale by a local private investor.

Gross Waddell directors Andrew Greenway and Andrew Waddell are expecting about $9 million for the site, which is being sold with plans to refit the existing building into a 25-unit apartment complex with a potential end value of $40 million or more.

The former school campus is near the prominent Carmelite Monastery, home to Carmelite nuns since 1929.

Autobarn on the move

PERTH-based Aspen Group has avoided, proverbially, being caught with its pants down.

The investor and fund manager has signed automotive retailer Autobarn to a major eastern suburb industrial facility until recently occupied by Pacific Brands' underwear brand Holeproof.

Autobarn has signed a 15-year lease to occupy the massive 22,541 sq m facility on a 4.2 hectare block at 76 Station Street, Nunawading, near the train station and Springvale Road exit of the Eastern Freeway. The facility, built about 20 years ago, includes a 2500 sq m office and an ample car park. The starting annual rent is $1.4 million.

Aspen paid $28 million for the major asset in late 2005, when Pacific Brands, the only tenant, had five years left to run on a 15-year lease.

The Autobarn deal will substantially extend the weighted average lease profile of the Aspen Diversified Fund the asset belongs to, according to Aspen head of commercial property Jamie Smith.

Autobarn chief executive and V8 race car driver Paul Dumbrell said the new Nunawading headquarters was four times the size of its outgoing Terracotta Drive facility, which is now for lease.

The company, which has more than 100 stores nationally, expects to move to Station Street by the end of the year.

Knight Frank's national industrial director James Templeton said that transport and logistics users were increasingly seeking quality locations close to major transport links, and that as a result, supply was limited.

New owner

A DEVELOPER has paid close to $4 million for a major site in Canterbury's quaint Maling Road shopping strip.

The 1708 sq m site, offloaded by owner occupiers Bradshaws of Canterbury Auto Services, is expected to make way for a mixed-use, apartment-based village with an end value of about $40 million.

John H Castran's John Castran, Brian Rayner and Grita Angelucci marketed the site.

Public housing buys

THE government is eyeing another prominent eastern suburb site to convert into a public housing block.

Industry sources say a government affiliated social housing arm is investigating the purchase of the prominent Ringwood Regent Motor Inn at 346 - 348 Maroondah Highway, near Car City.

The 31-year-old motel with 39 rooms is being offloaded by receivers and managers of an Asia-based investor who died shortly after buying the asset to redevelop.

Those with longer memories may remember when the motel was managed by the former Sundowner Group.

John H Castran director John Castran is expecting about $2.8 million when the motel is auctioned this week with vacant possession.

Public housing waiting lists in Australia have ballooned with the government and its social and affordable housing associates reacting by snapping up several major development sites during the economic downturn.

It's also offered developers incentives to incorporate public housing within their new projects, and made it easier for developers to bypass community consultation periods for projects. In the immediate Ringwood area, a nine-level public housing block is under construction in Larissa Street, while another tower, under construction in Tram Road Doncaster, reached its full height (10 levels) last week.

A public housing arm was also believed to be behind a major, recent confidential six-month campaign seeking motels, hotels and vacant blocks of flats, to buy or lease.

The government has also recently snapped up a former aged care facility in Box Hill and a motel in Wonthaggi, with the view to converting the sites into commission apartments.

The self-contained apartment set-up of motels suits the government, which is seeking immediate placement

for the growing number of people eligible for public housing.

What's Evolve up to?

EVOLVE Development - the property development company part controlled by tycoon Ron Walker - has purchased a land subdivision site in Melbourne's north-west. Read tomorrow's Sunday Domain for more information.

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