This article is from the Australian Property Journal archive
BILLIONAIRE developer Lang Walker has snapped a 50% stake in the Goods Shed for $56.1 million and will team up with Abacus Property Group to develop the site.
Walker will acquire a 50% interest in the entity that owns 710 Collins Street Melbourne for a total consideration of $56 million, which equates to 50% of the 30 June 2020 book value.
Abacus and Walker will jointly design, plan and obtain a development approval for the site and they will jointly own upon completion.
Abacus will provide vendor finance for up to five years at an interest rate of 5.5% per annum that reflects the current Abacus yield from the asset. Settlement is anticipated on 1 July 2021.
Walker said the acquisition and subsequent redevelopment of 710 Collins Street will provide the opportunity to celebrate the heritage significance of the iconic Goods Shed and deliver a high quality urban design outcome.
Walker has a track record in Docklands, having developed the $2.5 billion Collins Square, Australia’s second largest commercial mixed use development comprising five towers and the Southern Goods Shed.
“Our vision for the site will drive continued positive renewal within the Docklands precinct,” Abacus managing director Steven Sewell said.
“The partnership with Walker has been identified as one that will unlock the asset’s repositioning potential and create long term sustainable returns through redevelopment,” he added.
Abacus acquired the property in December 2014 from Lorenz Grollo’s Equiset for $76.5 million. Known as the Goods Shed, it occupies a rectangular block of circa 7,800 sqm spanning between Collins and Bourke streets.
The heritage listed former railway warehouse was transformed into a two-level commercial office building in 2010 following a significant refurbishment and development program. A four-storey retail and commercial building has been added at the Collins Street end. Comprising a net lettable area of 11,320 sqm, the property is currently leased to the Victorian government and headquarters of the Victorian Building Authority.
