Collingwood builder has taste for inner suburbs

The Collingwood-based developer is believed to have paid about $16 million for a one-hectare disused factory at 21-27 Brunswick Road, near the corner of Nicholson Street, where it is completing another project.

Caydon is reportedly planning to redevelop the old factory site into a $120 million village of apartment towers, shops and offices.

At that value, the project will be even bigger than the controversial Tip Top factory redevelopment around the corner, being undertaken by Toll boss Paul Little's building arm, Little Project Development.

The 21-27 Brunswick Road site has a wide frontage to Barkly Street at the rear. It was offloaded by Sydney-based investment group EG Funds Management, which paid just $8.7 million for it in October 2008.

EG purchased the site from manufacturer and textile distributor Charles Parsons, previous owner-occupier of the factory.

A Caydon representative was unavailable to comment on the speculation. Vinci Carbone directors Joseph Carbone and Frank Vinci are believed to have sold the development site, but declined to comment.

In April Caydon paid Vision Australia $21 million for a High Street, Prahran development site, with a permit for a 330-unit apartment complex and ground floor retail.

Last September, Caydon paid Mirvac $12 million for a 5000 square metre development site at 291-311 Burwood Road, overlooking the Glenferrie Oval in Hawthorn. Sold with a permit for an 18,800 square metre office, Caydon will instead rebuild the block as flats.

Caydon is also developing what will be Richmond's tallest residential tower (outside of commission flat buildings), rising nine levels from the Viva Plastics site at the busy Punt Road onramp of the Monash Freeway, near the Nylex sign and silos.

Earlier this year, Caydon finalised construction of Axiom, a seven-level, 81 unit apartment building in Hopkins Street, Footscray. It is also developing the Amia apartment building at the north-west corner of Nicholson Street and Brunswick Road, near its latest acquisition.

Big pay day for club

THE Pakenham Racing Club is expecting about $40 million from the sale of its prominent but outgoing Pakenham Racecourse & Showground, just beyond Melbourne's south-eastern boundary.

The club is moving to a 243-hectare purpose-built facility with an event centre and night race-appropriate lighting at Tynong, about 16 kilometres east of

Pakenham past Nar Nar Goon.

Construction of the facility is expected to start in August 2013, after the sale of the club's existing 25.85-hectare complex abutting the Pakenham train station and near the suburb's town centre.

Bound by Henry Street, Racecourse Road and Railway Avenue, the outgoing site will be rezoned to Comprehensive Development Zone, allowing for medium density housing, and a mixed-use area with offices and retail probably a major shopping centre.

An education and/or health facility can also be developed into any new project, according to selling agents CB Richard Ellis.

Sources speculate the redeveloped site could have an end value of more than $500 million, and may require Master Planned Community status, in any application to Cardinia Shire Council.

They also speculate that land values for a central activity district site like Pakenham Racecourse could fetch around $2 million a hectare, meaning the site could sell for more than $50 million.

Elsewhere in Melbourne, racecourses abutting the Moonee Ponds central activity district, and Caulfield, have become earmarked for redevelopment.

Cranbourne, Springvale and Werribee are other suburbs where racetracks are close to the suburb town centres, and like golf courses, relocation (and redevelopment) might become an option down the track.

Coles in the market

WESFARMERS-OWNED Coles Group is speculated to be paying around $13 million for an as-yet-undeveloped, approximate 4200 square metre supermarket in the ritzy Bay Street, Brighton, retail strip.

Sources say Coles is purchasing the space from ASX-listed Abacus Property Group, which is proposing a mixed-use village for the site on the south-west corner of Male Street.

The property, for a couple of years now a block of dirt behind a fence, was earmarked for a $38 million office and retail complex. However, it's believed a new complex with a residential component is now proposed.

In June Coles paid about $6 million for a 1.75-hectare development site in Gaffney Street, Coburg, which is expected to make way for a retail-based complex. The group is also behind Flemington's Showground Village shopping centre, originally part of the Royal Melbourne Showgrounds, north-west of town.

Quiksilver settles

INTERNATIONALLY established surf wear brand Quiksilver has chosen Port Melbourne as a base for its metropolitan operations.

The Torquay-based company has signed a seven-year lease for a 413 square metre, double-storey showroom in the Port Green Business Park at 67- 77 Wharf Road near the Todd Road exit of the West Gate Freeway.

The Quiksilver lease enabled the new building to sell to an interstate investor for $1.72 million, and on a yield of just under 7 per cent.

Suites are being marketed for sale or lease by Jones Lang LaSalle's Lincoln Reynolds and Ashley Buller, and Lemon Baxter's Luke Conquest and Richard Hutton.

Costa joint venture

GEELONG identity Frank Costa has entered a joint venture agreement to redevelop 40 hectares of land in Armstrong Creek near Geelong.

Costa Property Group will team with Integrated Development to build the $65 million, 400-lot residential village called Baron Rise, on the corner of Barwon Heads and Reserve roads, south-east of the Marshall train station near Grovedale. The affected land is currently being rezoned as part of the Horseshoe Bend Precinct Structure Plan.

Integrated Development is headed by ex-Stockland directors Jeffrey Garvey and Matthew Belford. Costa Property Group is the property arm of Geelong-based entrepreneur Frank Costa.

Each-way sale

FORMER Toll Holdings chairman Peter Rowsthorn and trainer Dale Sutton are selling a thoroughbred racing, training and breeding property about eight kilometres north of Seymour.

Wadham Park Seymour was initially offered for sale by tender as a whole in March but is now being sold in two parts to satisfy the two types of buyers that came forward during that campaign.

Lot A is spread over 101.5 hectares on the corner of Northwood Road and Johnsons Lane and is fitted out as a superior grade thoroughbred facility with stables, a 100-metre horse walker, vet facilities, an office, billabong and 1400-metre sand training track. Homes for the owner and manager, as well as work cottages are offered in Lot A, which is expected to sell for about $3 million.

Lot B is also accessed via Northwood Road. It measures 87.4 hectares and includes Goulburn River frontage. With a three-bedroom home, this part is expected to sell for about $2 million.

Selling agent Peter Hawkins of Pat Rice & Hawkins said the property was originally developed as stud property Newlands Farm.

Mr Rowsthorn bought it in 2007, but after he developed a Wadham Park racing and brood mare property at Tylden, Wadham Park Seymour is surplus to his needs. He is also believed to be buying another farm at Canungra, Queensland.

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