Developer picks off $30m South Melbourne car park

One of the car parks that sold in South Melbourne

A Chinese developer has swooped on a South Melbourne car park and a pair of office buildings, paying about $30 million amid a hot market for car park assets.

The pair of properties at 15-29 and 31-33 Bank St sold on a tight 3.9% yield on behalf of a local private owner.

They comprise a fully-leased car park with 380 bays as well as a 1504sqm office building at 15-29 Bank St, while the neighbouring property is a three-level office with a net lettable area of 1216sqm.

The sale bodes well for a major car park portfolio currently for sale in and around Melbourne’s CBD, which is expected to net more than $100 million.

The South Melbourne car park was part of a three-property portfolio that fetched $30 million

The South Melbourne car park was part of a three-property portfolio that fetched $30m

That portfolio includes 1000 car spaces across two sites at 380-406 Queen St in Melbourne and 16-32 Leicester St in Carlton.

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Colliers International’s Daniel Wolman, Matt Stagg and Oliver Hay sold the South Melbourne properties, with Wolman saying developers are circling above car park sites in greater numbers.

“As land tax and the congestion levy make holding onto car parks more challenging for investors, we are witnessing increased interest from developers in purchasing car parks,” Wolman says.

“We saw this interest in droves with this most recent sale of the Bank St property and we are also seeing it in the strong response to the (CBD and Carlton) car park portfolio that we are currently selling.”

“It is the biggest car park portfolio to be offered for sale in the Melbourne CBD for more than 10 years. On its own this portfolio is substantial and unique, but current market conditions elevate the offering to an unprecedented level.”