News

INVESTMENT OPPORTUNITY ON CITY FRINGE - The Age [Saturday, November 28, 2009] This showroom / warehouse / retail facility at 81-89 Queens Parade, Fitzroy North, is fully leased with a secure bank guarantee to a national company. The investment property is leased to Clipsal Electrical Accessories and returns a yearly rental of $292,500. The lease has fixed increases of 4 percent per year. The land measures 3,177 square metres and is on the corner of Queens Parade and George Street, with parking for 12 vehicles. Vinci Carbone selling agent Frank Vinci described the property as an excellent investment opportunity in a highly sought after city fringe location. For sale by Auction on Thursday, December 3, at noon on the site. The estimated price is $3.5 million –plus. Further details are available from Frank Vinci or Joseph Carbone on 9662 2020.

BACK IN THE RING - The Age [Saturday, November 07, 2009] The supermarket and office complex built into the walls and roof of Fitzroy's former Latino dance mecca, the Bullring, has quietly been listed for tender and is expected to fetch about $14 million. Icon Constructions redeveloped the former club into a major supermarket and office complex, with a 136 bay car park. Coles contributes to 73 percent of the buildings annual $953,000 rent. Icon purchased the site off restaurateur George Haddad, who closed the club about four years ago while obtaining redevelopment permits, according to sources. Crowds of up to 500 people are reported to have attended the club at its peak.

RCH1000 - NEW COMMITTEE MEMBER: JOSEPH CARBONE - RCH1000 Newsletter [Sunday, November 01, 2009] Joseph Carbone who has recently been appointed to the committee of the RCH1000 has a simple philosophy on life being ‘work hard to provide for your family and look after those around you to the best of your ability’. This philosophy has augured him well both in his personal life with his beautiful wife and two gorgeous daughters and has also earned him a large network of clients which have been loyal to him over the past twenty years that he has been in real estate. After spending close to twenty years with other real estate firms including Colliers International & Gross Waddell – In 2008 he established ‘Vinci Carbone Property’ being a boutique real estate agency and property consultancy which specialises in Commercial and Industrial Real Estate in Victoria but also deals frequently in other states. Vinci Carbone Property focuses on looking after all the needs of several clients with who Joseph and his co-director Frank Vinci have been dealing with over the years. Our main source of business and also the growth of our business have been generally supported by existing clients and constant referrals. Joseph brings a great deal of life and business experience to the committee of the RCH1000 which will enable him to make a great contribution to its future direction and growth in assisting in meeting its objective of 1000 members

FORGING AHEAD WITH MASSIVE FOOTSCRAY MARKET - The Age [Saturday, October 24, 2009] A giant Asian-themed fresh food market – and an adjoining bazaar selling clothing and variety goods – will be developed on the outgoing Forges of Footscray site, in Melbourne’s west. The syndicate of Vietnamese businessmen who in July paid about $16 million for the collection of properties on almost one hectare of land will split the site in central Footscray into two envelopes, divided by Albert Street. Under the development proposal, discount retailer Forges is expected to occupy a 1,500 sqm piece of the development, retaining its prominent Nicholson Street Mall frontage. At the rear of the mall, on a site with frontage to Albert and Paisley Streets, the variety goods and clothing market will be developed. On the western side of Albert Street, a fresh produce market selling a comprehensive range of Asian-based ingredients and materials will be established. Speaking on behalf of the site’s new owner, Vinci Carbone director Joseph Carbone said the 8,000 sqm market would trade for at least the next three to five years, until plans were finalised and approved for a larger development. Because it is in central Footscray, the Forges site is expected to eventually make way for a high density village of apartments, offices and multi-level retailing. The Dimmeys Company, which owns Forges, sold the prominent Dimmeys Swan Street Richmond store last July to property developer Joel Freeman, who is proposing a nine level, 89 unit apartment building on land at the rear of the site. The sell off by Dimmeys is part of a change in marketing strategy to occupy in marketing strategy to occupy smaller stores in a greater number of areas.

VINCI CARBONE KNOCKS DOWN $19M - Property Review [Wednesday, September 23, 2009] Melbourne real estate agents Vinci Carbone Property has sold 11 assets in the past two weeks, totalling $19.25 million. Director Frank Vinci said the agency auctioned 14 properties and the three properties which did not sell under the hammer are currently under offer. Overall, the 11 sales were on average yield across the investment properties was 5.38%. The strongest yield achieved was for a shop at 151 Martin St, Brighton which was sold for a price of $1.26 million reflecting a yield of 3.32% whilst the highest yield was achieved by the buyer of an older style 2 level building located at 245-249 Peel St, North Melbourne which was sold for $1.62 million reflecting on a yield of 6.2%. “The last sale out of our campaign was a very modern 2 level office building situated at 8-19 Grattan St, Prahran which was purchased by East Melbourne accountant Joseph Chahin for $4.55 million. “Chahin has been active in the development of inner city sites for the last 15 years. He has tended to concentrate of speculative transactions however, since early 2009, his focus has changed to larger inner city passive investment holdings that present medium term development potential,” Vinci added. “Given these results and the level of enquiry which we received we are very confident about the depth of the property market in particular for investment and development properties,” he concluded. Vinci Carbone’s sales success: · 461-465 Mt. Alexander Road, ASCOT VALE: Sold for $1,582,500 on a yield of 5.89% · 110-112 Whitehorse Road, BLACKBURN: Sold for $1,655,000 on a yield of 5.55% · 580 High St, PRESTON: Sold for $1,610,000 on a yield of 4.28% · 1285 Nepean Highway, CHELTENHAM: Sold for $1,600,000 on a yield of 4.63% · 245-249 Peel St, NORTH MELBOURNE: Sold for $1,625,000 on a yield of 6.23% · 758 Stud Road, SCORESBY: Sold for $705,000 on a yield of 5.36% · 219-221 Normanby Road, SOUTHBANK: Sold for $2,720,000 on a yield of 5.39% · 85 Franklin St, MELBOURNE: Sold for $838,000 on a yield of 5.86% · 8-10 Grattan St, PRAHRAN: Sold for $4,550,000 on a yield of 5.88% · 151 Martin St, BRIGHTON: Sold for $1,265,000 on a yield of 3.32% · 4 Miles St, DEER PARK: Sold for $1,075,000. Vacant Land.

VINCI CARBONE'S ELEVEN - Australian Property Review [Tuesday, September 22, 2009] An office building in Prahran, Victoria has been sold at auction, the eleventh sold by agents of Vinci Carbone over the past two weeks. The modern, two-level office building, situated at 8-19 Grattan Street, Prahran, was purchased by East Melbourne accountant Joseph Chahin on a yield of 5.88%. Mr Chahin is understood to have been active in the development of inner city sites for the last 15 years, tending to concentrate on speculative transactions, though his focus since early 2009 is understood to have changed to larger inner city passive investment holdings that present medium term development potential. The $4.55 million sale of the 1312 sqm building on a 991 sqm site brings the total value of properties sold by Vinci Carbone over the past fortnight to $19.25 million. Over the past two weeks a total of 14 properties were taken to auction by Vinci Carbone, including the Mario Salvo portfolio, with 11 of the properties selling under the hammer and the remainder being currently under offer. The average yield across the investment properties was 5.38%, and the strongest yield was achieved by a shop at 151 Martin Street, Brighton, which was sold for a price of $1.265 million, reflecting a yield of 3.32%, The highest yield was achieved by the buyer of an older style, two-level building at 245-249 Peel Street, North Melbourne, which sold for $1.625 million, reflecting a yield of 6.2%. Vinci Carbone director, Frank Vinci, said that given these results and the level of enquiry that he received, he is very confident about the depth of the property market, in particular for investment and development properties. "It provides incentive to put properties on the market when you see results like these," said Mr Vinci.

VINCI CARBONE ON A ROLL - Property Review [Friday, September 18, 2009] Melbourne real estate agents Vinci Carbone Property has sold seven properties across Melbourne from the Mario Salvo Portfolio. The properties were marketed over four weeks and Vinci Carbone Property director Frank Vinci said the company had over 450 enquiries from a developers, investors and owner occupiers. The result was that the each property in the portfolio was sold on yields varying from 4.28% to 6.23%. The average yield across the portfolio was 5.49% with the total value of transactions sitting at just below $11 million. Three properties were display sites occupied by Europcar, another was leased to Crown rentals. The fifth property was a two level freehold occupied by an Optus dealer in North Melbourne and part of the property occupied Jefferson Ford in Southbank and a shop in Franklin Street, Melbourne. The last property will be auctioned this Thursday and comprises a display site occupied by Europcar in Nepean Highway, Cheltenham. Frank Vinci said given the level of interest and new enquiries received already, there is no doubt the property market has got enormous depth. “We estimate that just out of the 450 enquiries which we have received that there is probably close to $800 million looking for a home by way of property acquisitions. “This is in addition to the large number of buyers which we already had on our books that are looking to spend lump sums of up to $50 million each,” he concluded.

PUNTERS POUNCE ON PORTFOLIO - Australian Property Review [Thursday, September 17, 2009] Eight properties in a Victorian portfolio have been sold by agents of Vinci Carbone over a three-day period of auctions. The portfolio of properties, including car yards and retail shops, were sold by property developer, Mario Salvo. The eight sold properties of the twelve in the portfolio were sold on yields varying from 4.28% to 6.23%, with the average yield across the portfolio being 5.49% and the total value of transactions sitting at approximately $11 million. Over 450 enquiries from a combination of developers, investors and occupiers are understood to have been received, with Vinci Carbone agents describing the auctions as being ‘oversubscribed’. The properties sold comprise of three display sites occupied by Europcar, one display site leased to Crown rentals, a two-storey freehold occupied by an Optus Dealer in North Melbourne, part of a property occupied by Jefferson Ford in Southbank and a shop in Franklin Street, Melbourne. An eighth property in the portfolio, a display site occupied by Europcar on the Nepean Highway, Cheltenham, is confirmed to have been sold at auction for $1.6 million, equating to a yield of 4.6%. Vinci Carbone director, Frank Vinci, said that given the level of interest and new enquiries he has received regarding this group of properties there is no doubt that the property market has got enormous depth. “We estimate that just out of the 450 enquiries which we have received that there is probably close to $800 million looking for a home by way of property acquisitions,” said Mr Vinci. “This is in addition to the large number of buyers which we already had on our books that are looking to spend lump sums of up to $50 million each.”

53-61 HORSBURGH DRIVE, ALTONA NORTH - Property Review Weekly [Friday, September 11, 2009] A new industrial office warehouse recently developed by Toll Holdings Limited, at 53-61 Horsburgh Drive, Altona North, has been sold for $22.0 million to a private Melbourne investor, representing a yield of 8.0 per cent; a result that the agents argue is one of the best industrial sales for some time. The property comprises a purpose-built office warehouse of 18,100 square metres, 4,264 square metres of awnings on land of 5.416 hectares. A substantial component of the improvements comprises 30,000 square metres of medium to heavy duty hardstand. The property is currently under construction and is being built to the specific requirements of NQX Freight Systems, which is a wholly owned subsidiary of Toll Holdings Limited. Toll will leaseback the facility for 12 years from settlement. The Toll Property Group purchased the 50 hectare former DOW Chemicals site some years ago to develop a new industrial estate primarily to house many of its logistics business units. The total site comprised some 50 hectares with a substantial frontage to Kororoit Creek Road. Some of the major occupiers in the area include Nestle, Coles Group, Toyota Australia, Target Australia, SCT Transport Fowlers Motor Group and many more. "This result is testament to the strength of the private investor market and the lack of quality industrial investment stock currently available for sale. We are seeing private high net worth investors are prepared to step up for premium quality property assets. Obviously the 12 year lease covenant to Toll together with significant depreciation benefits were major factors in determining the suitability of this asset," said Joseph Carbone, Director of Vinci Carbone Property. Michael Fox, Director of Property at Toll added that, "this was the second parcel of land Toll had purchased to develop logistics facilities to house a number of Toll's business units. Toll's first purchase in Altona was the former BP Oil Refinery 10 years ago and Toll has successfully developed and on sold eight buildings in the first estate on long leaseback arrangements". It has been a while since we have seen a result like 8 percent for an industrial property over $20 million. We have seen some smart private money start to come into the market of recent months," he said.

TOLL SALE SETS 8% YIELD BENCHMARK - Property Review [Wednesday, September 02, 2009] A BRAND new office/warehouse complex in Melbourne’s western industrial hub of Altona North has been sold by Toll Holdings on a yield of 8%. Toll developed the property at 53 – 61 Horsburgh Drive, Altona North. The property was sold by real estate agents Vinci Carbone Property for $22.0 million to a private Melbourne investor, representing a yield of 8.0% which is arguably one of the best industrial sales for some time. Toll will leaseback the facility for 12 years from settlement. The property is currently under construction and is being built to the specific requirements of NQX Freight Systems – a wholly owned subsidiary of Toll Holdings Limited. The property comprises a purpose built office warehouse of 18,100 sqm, 4,264 sqm of awnings on land of 5.416ha. A substantial component of the improvements comprises 30,000 sqm of medium to heavy duty hardstand. The Toll Property Group purchased the former DOW Chemicals 50ha some years ago to develop a new industrial estate primarily to house many of its logistics business units. It is now occupied by Nestle, Coles Group, Toyota Australia, Target Australia, SCT Transport, Fowles Motor Group and many more. Vinci Carbone Property director Joseph Carbone said this result is testament to the strength of the private investor market and the lack of quality industrial investment stock currently available for sale. “We are seeing private high net worth investors are prepared to step up for premium quality property assets. Obviously the 12 year lease covenant to Toll together with significant depreciation benefits were major factors in determining the suitability of this asset,” he added. Toll’s director of property Michael Fox said this was the second parcel of land Toll had purchased to develop logistics facilities to house a number of Toll’s business units. Toll’s first purchase in Altona was the former BP Oil Refinery 10 years ago and Toll has successfully developed and on-sold eight buildings in the first estate on long leaseback arrangements. It has been a while since we have seen a result like 8% for an industrial property over $20 million. We have seen some smart private money start to come into the market of recent months. I hope this result helps those trusts and institutions that are being told that the market is at 8.5% to 9.5% and beyond - its not! “This is the first development in Toll’s second estate at Altona and we are elated at the result Vinci Carbone delivered,” Fox concluded.

INVESTOR TAKES TOLL ON ALTONA NORTH - Australian Property Review [Tuesday, September 01, 2009] A new industrial office and warehouse recently developed by Toll Holdings in Altona North, Victoria, has been sold to a private Melbourne investor on a yield of 8%. The property at 53–61 Horsburgh Drive, Altona North, comprises a purpose built office and warehouse of 18,100 sqm with 4264 sqm of awnings, with a substantial component of the improvements comprising of 30,000 sqm of medium to heavy duty hardstand. The property is currently under construction and is being built to the specific requirements of NQX Freight Systems, a wholly owned subsidiary of Toll Holdings, which will lease back the facility for 12 years from settlement of the $22 million sale. Toll Property Group previously purchased the 50 hectare, former DOW Chemicals site to develop a new industrial estate primarily to house many of its logistics business units. Vinci Carbone Property director, Joseph Carbone, who managed the sale, described the result as a testament to the strength of the private investor market and the lack of quality industrial investment stock currently available for sale. “We are seeing private high net worth investors are prepared to step up for premium quality property assets,” said Mr Carbone. “Obviously the 12 year lease covenant to Toll together with significant depreciation benefits were major factors in determining the suitability of this asset.” Toll director of property, Michael Fox, said that Toll’s first purchase in Altona was the former BP Oil Refinery 10 years ago and added that Toll has successfully developed and on-sold 8 buildings in the first estate on long leaseback arrangements. “It has been a while since we have seen a result like 8% for an industrial property over $20 million,” said Mr Fox. “We have seen some smart private money start to come into the market of recent months.” “I hope this result helps those trusts and institutions that are being told that the market is at 8.5% to 9.5% and beyond - it’s not!”

TOLL SELLS ALTONA SITE FOR $22M - The Financial Review [Tuesday, September 01, 2009] The listed freight distribution and logistics company Toll Holdings has sold one of its industrial sites at Altona, west Melbourne, for $22 million to a private family. Toll property director Michael Fox said the transaction, struck on a yield of 8 per cent, sent a strong message to those who think industrial property yields should be much higher. “It has been awhile since we have seen a result like 8 per cent for an industrial property over $20 million” he said. “I hope this result helps those trusts and institutions that are being told the market is at 8.5 per cent to 9.5 per cent and beyond – because its not.” He said. The purpose-built office warehouse of 18,100 square metres with 30,000 sqm of medium to heavy-duty hardstand is under construction for NQX Freight System, a wholly owned subsidiary of Toll Holdings, which will lease back the building for 12 years from settlement. The development, at Horsburgh Drive, is just one of a few that Toll Property Group is developing after it bought a 50 hectare site from Dow Chemicals several years ago. Vinci Carbone Property Director Joseph Carbone negotiated the deal and said he was seeing a notable rise in demand for industrial properties. ‘We are seeing that private high net worth individuals are prepared to step up for premium-quality property assets,” he said. “Obviously the 12 year lease covenant to Toll, together with significant depreciation benefits, were major factors. “This result is testament to the strength of the private-investor market and the lack of quality industrial investment stock currently available”. Toll’s first purchase in Altona was the former BP oil refinery 10 years ago. The group went on to develop and on sell eight buildings in the first estate on long leasebacks. Toll reported a $270 million profit for the year ended June 30, beating expectations. The Altona transaction follows the sale of Goodman Group’s Regal Business Park at Rowville in western Melbourne, also at $22 million, but on a yield of 9.2 per cent. Toll declared a final dividend of 13.5c, taking the full year dividend to 25c, in line with last year.

TOO SMALL FOR SALVO - The Age [Saturday, August 22, 2009] Europcar founder turned property developer Mario Salvo is selling a portfolio of 12 central business district and suburban investments. The properties are a mix, including shops, offices and open air car yards - many leased to Europcar - and are expected to fetch close to $20 million. In the CBD, Mr Salvo is offloading four fully leased shops on the ground level of the Franklin Lofts apartment tower he developed. An office building at 245 Peel Street in North Melbourne has also been listed for sale, as well as sites of more than 1000 square metres in Blackburn, Cheltenham, Maidstone and Preston. Part of the property occupied by Southbank's huge Jefferson Ford dealership at 219-221 Normanby Road is also up for grabs, and is expected to fetch more than $2 million. Vinci Carbone directors Frank Vinci and Joseph Carbone are marketing the portfolio properties separately. Mr Vinci said, with the exception of the city shops, the Salvo properties were leased, and offered redevelopment potential. Mr Salvo, whose property development ventures have moved into big-ticket items such as high-rise Southbank apartment towers, told Capital Gain some of the assets were now too small for his growing property portfolio. He said he would continue to shop around the Melbourne market for major development site opportunities. Warrigal Road site abuts another bulky goods centre occupied by Harvey Norman and Officeworks. Clariant sold the site to Peninsula last year with a retail development permit. A Peninsula spokesman could not be contacted to confirm whether a DFO-type discount outlet would occupy space within the new Chadstone complex.

WADHAWAN GROUP SNAPS UP THIRD MELBOURNE SITE - The Age [Sunday, August 16, 2009] Indian billionaire Rakesh Wadhawan is continuing to hand-pick first-rate development sites in "Melbourne, adding a beachfront Middle Park property to his growing portfolio.   The Mumbai-based businessman, worth an estimated $2.35 billion according to Forbes,is believed to be paying about $13 million for a prominent residential development siteat 312 Beaconsfield Parade, on the comer of Fraser Street.   The site was sold by boutique developer Fridcorp, which paid $8 million for it in Decemberand obtained a planning approval for Pearl, a landmark, five-level apartment building. Fridcorp director Paul Fridman declined to comment. Wadhawan Group spokesperson Raj Savlok was unavailable for comment.   Since May, the Wadhawan Group has snapped up two other sites in Melbourne: one inDarling Street, South Yarra, for $4 million, and the other the "City Road Wedge" site inSouthbank for $40 million, where it is proposing a $600 million project of apartments,shops and a hotel. Vinci Carbone Property Director Joseph Carbone, who sold the Southbank site, said he expected the Wadhawan Group to slow its Melbourne spending spree. "They have acquired all they are going to acquire for the moment," he said.   "They now have a view to focusing on the development of these projects."   Wadhawan Group chairman Kapil Wadhawan was in town earlier this month, meeting Victorian Industry and Trade Minister Theo Theophanous to discuss better economic ties between India and Australia. Rakesh Wadhawan's other business interests are in housing finance, food, beverages and groceries.

FORGING AHEAD WITH SALE - Australian Property Review [Wednesday, July 22, 2009] After several decades as a Footscray icon, Forges of Footscray has confirmed it has sold its almost one hectare land holding to a syndicate of local businessmen. Forges will remain in occupancy in the short term which could be for up to 12 months or more. The property which is located within the major retail activity centre of Footscray, covers over 9000 sqm of land has 4 street frontages and is zoned Business 1. The land is comprised within 8 different titles and is situated opposite Footscray Plaza Shopping Centre which includes a Coles Supermarket & K-Mart Department Store. The property has a total gross building area of over 7000 sqm and also has a roof top car park. Vinci Carbone director, Joseph Carbone, who negotiated the sale of the property on behalf of the vendors indicated the property had been sold for an undisclosed price. Industry sources confirm the property has been for sale since April for a price in the order of $16,000,000. News of the Footscray sale follows the offloading last year of the Forges company’s Dimmeys Richmond property for $16.5 million to private developer Joel Freeman. Joseph Carbone said that, “Footscray has an enormous amount of potential being so close to the city and Docklands, there is scope with this property to develop a substantial mixed use development incorporating comprehensive retail and high density residential, subject to relevant council approvals.” “Rarely do we see such a site of this size and proximity to the CBD come on to the market.” Mr. Doug Zappelli, managing director of Forges of Footscray stated that the group was pleased with the result achieved for the property and that he was hoping to integrate a smaller store of some 1000 sqm into the purchasers redevelopment to ensure a continued presence of Forges is maintained in the Footscray area.

FIRM FORGES AHEAD - Star News Group [Tuesday, July 21, 2009] A FOOTSCRAY icon has been sold off the same week the suburb celebrated its 150th birthday. A syndicate of local businessmen have bought Forges of Footscray for about $14.5 million and are in talks with the council to redevelop the site to include an apartment complex, shopping centre and possible office space. It is believed the development could go as high as 12 storeys. Forges will remain open for up to two years while the new owners get planning permits for the site. The properties, which spread over Paisley, Albert, Nicholson and French streets, cover over 9000 square metres of land. Vinci Carbone director Joseph Carbone, who negotiated the sale, said the buildings were prime pieces of land. “Footscray has an enormous amount of potential being so close to the City and Docklands; there is scope with this property to develop a substantial mixed use development incorporating comprehensive retail and high density residential, subject to relevant council approvals,” Mr Carbone said. “Rarely do we see such a site of this size and proximity to the CBD come on to the market.” Forges managing director Doug Zappelli was thrilled with the sale. “It’s good because we were planning to downsize Forges anyway and we looked two or three years ago at putting a supermarket in and so forth but due to difficulties it was easier for us to sell it and we’re very happy with the price,” Mr Zappelli said. “We don’t plan to decrease our total business. The problem with that Forges site is it’s all over the place…and the way we buy and sell our stock today, it was too big for one particular site.” The management held a meeting with staff last Monday to inform them of the sale. Mr Zappelli said Forges would not be making any workers redundant, but plans to relocate them to a group of up to three stores the company hopes to open in the area. One of the possible locations is Braybrook’s Central West Shopping Centre. Forges was opened in 1898 by Keith Forge and was managed by three successive generations of the Forge family until it was sold to discount retailer Dimmeys in 1987, who retained the prominent Forges name and logo. The sale comes nearly a year after Mr Zappelli sold Dimmeys in Richmond for $16.5 million to private developer Joel Freeman.

FORGING A FOOTSCRAY REVOLUTION - Maribyrnong Leader [Tuesday, July 21, 2009] FOOTSCRAY’S iconic Forges store has been sold to a group of mystery businessmen for close to $16 million, paving the way for high-density housing and new shops in the heart of the suburb. But Forges, which opened in 1898, expects to continue occupying some of the almost 1ha property, which fronts Nicholson, Paisley and Albert streets. Negotiations continue with the buyers - an unidentified group of local businessmen - about how the discount department store will continue operating, managing director Doug Zappelli said. “At this stage we won’t be moving,” Mr Zappelli said. “We’ll be downsizing the shop but we’ll be staying in the same place.” Mr Zappelli said the store was too large for the retailer and a space of 1000sqm was more viable. Real estate agent Joseph Carbone, who negotiated the sale, said the developers had plans for a mix of retail and high-density housing. The syndicate plans to develop the site in three stages, Mr Zappelli said. Footscray Traders Association president Lidia Cammarano said it was sad to see an institution go. “But it could be good for Footscray, depending on what they do,” she said. Maribyrnong Mayor Michael Clarke agreed. “(It is a) commercial decision (that is) completely understandable and we envisage it will create more opportunities.” Mr Zappelli said employees’ jobs were safe.

FORGES STORE FETCHES HIGH PRICE - Property Review [Thursday, July 16, 2009] The Dimmeys & Forges store in Melbourne’s western suburb of Footscray has sold for a rumoured price of $16 million. Vinci Carbone director, Joseph Carbone negotiated the sale of the property on behalf of the vendors for an undisclosed price. But industry sources confirm the property has been for sale since April for around $16 million. It has been snapped up by local businessmen who will keep the Forges store in the short term, potentially up to 12 months or longer. The property which is located within the major retail activity centre of Footscray, covers over 9,000 m2 of land has 4 street frontages and is zoned Business 1. The land is comprised within eight different titles and is situated opposite Footscray Plaza Shopping Centre which includes a Coles Supermarket & K-Mart Department Store. The property has a total gross building area of over 7,000 sqm and also has a roof top car park. Joseph Carbone said Footscray has an enormous amount of potential being so close to the City and Docklands, there is scope with this property to develop a substantial mixed use development incorporating comprehensive retail and high density residential, subject to relevant council approvals. “Rarely do we see such a site of this size and proximity to the CBD come on to the market,” he added. Forges of Footscray managing director Doug Zappelli said he was hoping to integrate a smaller store of some 1,000 sqm into the redeveloped centre.

NO DISCOUNT IN SALE OF FORGES LANDMARK - The Age [Wednesday, July 15, 2009] Forges of Footscray has become the latest relic of Melbourne’s rich shopping heritage to sell to a developer, reaping owner Dimmeys a rumoured $16 million. A group of local businessmen is believed to have bought the one hectare site on Nicholson Street, with plans for a high-density shopping and apartment complex. The sale follows that of the 150 year old Dimmeys store on Swan Street, Richmond, in July last year to developer Joel Freeman. A developer also bought the gracious Le Louvre boutique on Collins Street last month, with plans to retain the heritage façade in a towering office and retail complex. Dimmeys managing director Doug Zappelli said Forges was too large for the discount retailer, which could no longer sell leftovers from Australian labels such as Bonds and Holeproof, because they were now manufactured overseas and too expensive to import. “The shop’s too big for us and the way we’re operating our business at the moment,” Mr Zappelli said. “We’ve had to change because there are no clothing manufacturers left in Australia.” He said the Dimmeys chain of about 40 shops would grow to about 60 shops over the next few years using funds from recent sales, with each shop at about 1000 square metres. Forges, which has been operating as a department store on Nicholson Street since 1898, would continue to trade in its current space for up to two years. “It’s part of our strategy to have smaller stores, which will keep our business successful and keep us buying and selling bargains. For us, it was a very big move to sell Forges … but we’re very happy with the price”. Agent Joseph Carbone, of Vinci Carbone Property, refused to disclose the price paid for the 9000 sqm site, but sources say it was close to the advertised price of $16 million. Mr Carbone said demand had been strong due to the development opportunities. “Rarely do we see such a site of this size and proximity to the city come on to the market,” he said. “Footscray has an enormous amount of potential, being so close to the city and Docklands.” The Victorian Government is spending more than $50 million to upgrade Footscray’s transport and shopping zones in an attempt to transform the suburb into a major “transit city”, with one of the most concentrated populations outside the Melbourne CBD. Planning sources say that until now, land values have been too low to encourage major high-density residential developments, with the exception of a few new multi-storey buildings on Barkly Street. Mr Zappelli said Forges hoped to lease space from the new owners if they built a retail complex on the site. Forges competed with Dimelow and Gaylard in Richmond – later dubbed “Dimmeys” – in the heyday of department store shopping in the early 1900s. Then, the stores were considered upmarket amid their working-class locations, but both became discount shops. Dimmeys bought Forges in 1978 and a chain of about 40 Dimmeys stores is now owned by a consortium headed by the prominent retailer, Doug Zappelli. The historic Dimmeys building in Richmond sold in July 2008 to Joel Freeman’s company Richmond Icon for $16 million and the shop was expected to close in June. Hawthorn legend Robert “Dipper” DiPierdomenico, who spruiked the store for 11 years with his catch-cry “be there”, pretended to weep in his last ad for the company. But colourful signs on the Swan Street shop now proclaim “We’re here for another 12 months”. Mr Zappelli said planning delays meant Dimmeys would be staying put for “at least the next two years”. He said he was negotiating to move elsewhere in Richmond after that. Fulcrum Town Planners, on behalf of Richmond Icon, lodged plans with the City of Yarra for a nine-storey 89 unit apartment building at the rear of the property in March. The proposal would retain the façade and clock tower, but a Hayden Dewarmural on the Green Street side of the building would be destroyed Heritage Victoria is also considering the application. A council spokeswoman said reports that plans had been rejected were incorrect. She said the council had agreed to a request from the applicant for a two month extension, ending on July 30, to respond to preliminary concerns and questions. Dimmeys in Richmond is noted for its ruby-domed clock tower and is considered a prime example of American Romanesque architecture. It was added to the Victorian Heritage Register in February. The council is concerned about the proposed building mass, impacts on the north and south views of the Dimmeys dome and the removal of the Green Street mural.

VISY - Australian Property Review [Monday, July 13, 2009] Visy Paper Pty Ltd is the latest tenant to occupy a brand new industrial office warehouse of 6110 sqm, recently developed at the Somerton Logistics Centre. The warehouse forms part of the Somerton Logistics Centre which is located on the corner of Cooper Street and Fillo Drive, near the Hume Highway, in Victoria. It is understood that Visy will be paying around $70/sqm for the space. Comprising eight buildings with a gross lettable area of 123,263 sqm, the Somerton Logistics Centre is one of the largest industrial developments recently completed in the northern region of Melbourne. “The rental achieved for this property reflects the high quality nature of the buildings, meeting the specific requirements of Visy within a short time frame” said Joseph Carbone, director of Vinci Carbone Property. Nigel Hunt, director of the Somerton Logistics Centre, said “we are pleased to welcome Visy Paper to our industrial estate.” “With the decrease of construction and therefore a limited amount of warehousing available in the industrial sector, enquiry has been strong and we are confident we will have the remainder of the estate leased within a short period of time.

VISY SHUFFLES OFF TO SOMERTON - Property Review [Wednesday, July 08, 2009] VISY Paper has signed a major lease at the Somerton Logistics Centre in Melbourne’s north. The company has leased 6,110 sqm. The warehouse forms part of the Somerton Logistics Centre, one of the largest industrial developments recently completed in the northern region of Melbourne. Located on the corner of Cooper Street and Fillo Drive (near Hume Highway), the project comprises eight buildings with a gross lettable area of 123,263 sqm. Leasing agent Vinci Carbone Property’s director Joseph Carbone said the rental achieved reflects the high quality nature of the buildings, meeting the specific requirements of Visy within a short time frame. “We are pleased to welcome Visy Paper to our industrial estate,” Developer Somerton Logistics Centre director Nigel Hunt said. “With the decrease of construction and therefore a limited amount of warehousing available in the industrial sector, enquiry has been strong and we are confident we will have the remainder of the estate leased within a short period of time,” he concluded.

51-65 WHARF ROAD, PORT MELBOURNE - Property Review Weekly [Friday, July 03, 2009] A brand new industrial office warehouse recently developed by the Salta Group, Port Melbourne, has sold for $7.85 million to a private Melbourne-based buyer, representing a yield of 7.6 per cent which is arguably one of the sharpest yields achieved for an industrial investment in the last 12-18 months. The property comprises an office warehouse of 4,256 sqm on land of 6,303 sqm which has a Business 3 zoning. The property was specifically built for Mercedes Benz Australia/Pacific Pty Ltd which holds a 10 year lease over the property. "This result is testament to the strength of the private investor market and in particular the strong demand for premium quality property assets," added Joseph Carbone, Director of 'Vinci Carbone Property. Yields for blue chip industrial investments are expected to tighten over the next few months as supply is simply way below the level of demand. Sam Tarascio, Managing Director of the vendor, Salta Properties, said "we believe that the yield gap separating A Grade and B Grade industrial investments will tighten over the next few months. Cashed up purchasers are now beginning to factor in key attributes such as strength of lease covenant, quality of construction, location, and reliability of the developer into their decision making, rather than simply a yield-based decision. Demand for these properties far outstrips supply, and we see a gradual improvements in yields for such properties", Mr Tarasco said, Salta will use the proceeds from the sale to commence one of the many projects in its development pipeline.

IN DEMAND - The Financial Review [Thursday, June 18, 2009] Salta Properties has sold an industrial office warehouse at 51-65 Wharf Road, Port Melbourne, to a private Melbourne-based buyer for $7.85 million. Sam Tarascio, managing director of Salta Properties, said: "We believe that the yield gap separating A-grade and B-grade industrial investments will tighten over the next few months. Cashed-up purchasers are beginning to factor in key attributes such as strength of lease covenant, quality of construction, location, and reliability of the developer, into their decision making, rather than simply a yield based decision. Demand for these properties far outstrips supply, and we see a gradual improvement in yields for such properties.

$7.85M PORT MELBOURNE SALE SHOWS A 'SHARP' INDUSTRIAL YIELD - The Age [Wednesday, June 17, 2009] The Mercedes-Benz office warehouse in Port Melbourne which was purpose-built last year by Salta properties, has been sold to a private Melbourne investor for $7.85 million. The Wharf Road property is leased to Mercedes-Benz for 10 years and has an income of about $603,000 - reflecting a relatively low yield of 7.6 per cent. Agent Joseph Carbone, director of Vinci Carbone Property, said the yield was 'one of the sharpest for an industrial investment' that he had seen in the Australian market recently. 'This time last year we would have been talking about yields about 8 per cent,' Mr Carbone said. 'This is evidence of a strong investment market and strong demand from private investors for premium quality assets,' he said. Salta Managing Director Sam Tarascio said the sale showed that buyers were not just looking for a lucrative yield, but were interested in the lease over the property and the quality of the building. Salta will use the proceeds of the sale to start one of its development projects, but declined to say which.

SALTA CAST OFF FROM PORT MELBOURNE - Australian Property Review [Wednesday, June 17, 2009] A brand new industrial office and warehouse recently developed by the Salta Group in Port Melbourne, Victoria, has been sold on a yield of 7.8%. The property, located at 51-65 Wharf Road, Port Melbourne, was sold for $7.85 million to a private Melbourne based buyer. The agents also cited that the yield is arguably one of the sharpest achieved for an industrial investment in the last 12-18 months. The property comprises an office warehouse of 4256 sqm on land of 6303 sqm which has a Business 3 zoning. The property was specifically built for Mercedes Benz Australia/Pacific Pty Ltd which holds a 10 year lease over the property. “This result is testament to the strength of the private investor market and in particular the strong demand for premium quality property assets” said Joseph Carbone, director of Vinci Carbone Property. Sam Tarascio, managing director of the vendor, Salta Properties, said that “we believe that the yield gap separating A Grade and B Grade industrial investments will tighten over the next few months.” “Cashed up purchasers are now beginning to factor in key attributes such as strength of lease covenant, quality of construction, location, and reliability of the developer, into their decision making, rather than simply a yield based decision.” “Demand for these properties far outstrips supply, and we see a gradual improvement in yields for such properties.” Salta will use the proceeds from the sale to commence one of the many projects in its development pipeline.

RARE OPPORTUNITY BECKONS [Saturday, May 16, 2009] This property at 43-45 Claremont Street, South Yarra is a freestanding, single storey building suitable for developers, owner occupiers and investors. The property is near South Yarra train station, among several national fashion retailers including Kookai and Roger David and near the Chapel Street retail precinct. The building has an area of 425 sqm on land of 487 sqm. There is on site parking for several cars, with rear right of way access. The property is offered with vacant possession. The land is zoned Business 2 and according to selling agents, Stonnington Council has proposed that the land be rezoned to Mixed Use. The Owner has applied for a planning permit for a 12 level development to include 66 apartments with basement parking. The council has not yet formally responsed to the application. Selling agent Joseph Carbone of Vinci Carbone said: "This is an opportunity to purchase in what has become one of the most fashionable and sought after streets in South Yarra". For sale by Expressions of interest closing Thursday, May 21. For details, contact Frank Vinci or Joseph Carbone of Vinci Carbone Property on 9662 2020. Price is $2.5 million.

FORGES' NEW STRATEGY - The Age [Saturday, March 07, 2009] Melbourne's western suburbs is losing one of its largest and proudest retailers, with Forges of Footscray confirming it will sell its almost one hectare land holding, part of which abuts the Nicholson Street Mall. The sale is believed to be part of a strategy by the discount retailer to open smaller, 1000 square metre shops in a greater number of areas and cash in on the current cash strapped economy. News of the Footscray sale follows the offloading last year of Forges' Dimmeys Richmond property for $16.5 million to private developer Joel Freeman. Dimmeys is expected to occupy a small piece of a retail space within a redevelopment of the prominent Swan Street building. Vinci Carbone Directors Frank Vinci and Joseph Carbone are marketing the Forges of Footscray properties, which spread over Paisley, Albert and French Streets and include buildings and land used for car parks. The sites are expected to sell for about $15 million and eventually be developed into a major inner city shopping centre, possibly with some form of high rise residential. Forges Managing Director Doug Zampelli was unavailable for comment when contacted by Capital Gain.

ICON TO DANCE AWAY - The Age [Saturday, February 21, 2009] Icon Constructions has decided to part with the Fitzroy building once considered home to Melbourne’s Latin American community. The office and retail complex in Johnston Street is within the walls of former Latin music club The Bullring, which closed in 2004. Coles supermarket is the major tenant at the new development, occupying what was once The Bullring’s dance floor. The development also includes 136 car parking bays, and 600 square metres of office space in two office suites. Vinci Carbone Property directors Joseph Carbone and Frank Vinci, who are marketing the property, declined to comment. At its peak, The Bullring held dance classes that were reported to have attracted crowds of up to 500 people. The Bullring was owned by restaurateur George Haddad, who sold the property to developer Icon about a year ago, after obtaining permits for the redevelopment. Inside property sources speculate the Fitzroy property could sell for about $20 million as an investment.

FOR SOUTH YARRA, A LITTLE $70M PROJECT - The Financial Review [Saturday, January 17, 2009] The private company of Toll Holdings managing Director Paul Little is proposing a $70 million residential development in Melbourne’s inner-east. Little Project Developments plans to build 344 apartments over 32 storeys at the South Yarra office site at 227-233 Toorak Road, which is now leased to Australia and New Zealand Banking Group. Labeled a principal activity centre under the Victorian government’s controversial Melbourne 2030 planning scheme, the precinct, known as Forrest Hill, was formerly an industrial heartland close to the city. It is now home to a raft of residential developments, and more than $350 million of projects are before the City of Stonnington’s planners. But the Mayor, Claude Ullin, says although he backs development he is concerned it could compromise amenity and lead to traffic congestion. ‘As far as Forrest Hill is concerned, yes, we want to provide an area that can be redeveloped, but once again developers have taken particular advantage of it, in my view, and some have not kept within the guidelines.’ he said. ‘No one is going to say that development shouldn’t occur – it’s the way it should occur – and currently we’re fighting a battle with governments who are grossly influenced at times by developers and the poor old resident gets left in the wake. ‘We run the risk of the state government coming and saying, ‘Well, council is blocking all of this, we need to take it over.’ Several developments have been knocked back by Stonnington and inevitably end up before the Victorian Civil and Administrative Tribunal, where Mr Ullin concedes the council has a poor track record of upholding decisions. Another logistics mogul, Lindsay Fox, has spoken out against a proposed $90 million project adjacent to Melbourne High School. Elsewhere in the precinct, Widgeon, a company associated with the Meydan Group is proposing a 217 apartment development worth $38 million at 69-77 River Street, South Yarra. On nearby Chapel Street, Vicland Property Group has lodged an application for an $18 million residential development on a site earlier purchased by Queensland developer Watpac. Vinci Carbone Property Director Frank Vinci says developers are already casting their eyes further afield because of the lack of suitable stock in South Yarra. ‘It’s a fairly tight held area, and while there are a few bits and pieces that are held by private investors and owner occupiers, most of the main sites are held by developers,’ he said. He says nearby Prahran is likely to be the next boom area.

SOUTH YARRA ON THE TOP - The Age [Saturday, August 23, 2008] South Yarra developer and investor Michael Yates has paid about $7.5 million for a 1000 sqm development site at 50-52 Claremont Street, abutting Melbourne High School. The site, which includes a modern two-storey office building, will be retained as an investment, but the school’s low rise buildings mean there is scope to building and capitalise on views to the north and east. Buildings in Claremont and Yarra streets closer to Toorak Road have been developed up to 23 levels. There is also a proposal by private developer Jerry Pilarinos to build a 25 level residential tower at the corner of Chapel Street and Alexandra Avenue, on the opposite side of Melbourne High. Vinci Carbone Property director Frank Vinci, who negotiated the Claremont Street sale, said South Yarra was becoming the fastest growing urban renewal precinct in Melbourne. In the past year, several developers have bought properties in the streets immediately east of the South Yarra railway station, known as the Forrest Hill precinct, and are developing more than $1.2 billion worth of apartments, offices and shops.

SALT SITE IN SOUTH YARRA SALE - The Age [Wednesday, August 06, 2008] Two South Yarra development sites worth more than $12 million have sold in the suburb's former industrial pocket, including the land of the notorious Salt nightclub. Boutique builder Fridcorp and joint-venture partner Macquarie Structured Finance are believed to be paying about $10 million for the Salt site in Claremont Street. Part of the development includes a walkway connecting South Yarra Station and Chapel Street. Around this laneway, a permit exists for a 13-level building with 7500 square metres of office space, a gymnasium and retailing. Apartments are also mooted for the site. In 2002, the nightclub was the scene of a dispute that resulted in the murder of two men and a teenager at the Yarra River nearby. Salt was closed in December 2003 and has since been demolished. The Salt site was quietly offloaded by developer and fund manager Pelorus Property Group. It bought the site in 2006 from Calibre Clothing founder Gary Zecevic for $3 million.   Representatives from Pelorus, Fridcorp and Macquarie Structured Finance were unavailable for comment.   Late last year, Fridcorp paid about $15 million for the former Channel Seven studios in South Melbourne, and is planning apartments on that site. It also recently purchased the Olive Tree Shopping Centre in Lilydale for a price speculated at $11 million. Fridcorp is part funded by venture capitalist and shopping centre owner Daniel Besen. In a second South Yarra deal, builder Icon Developments Australia has bought a 497 sqm development site at 43-45 Claremont Street, not far from Salt. Vinci Carbone director Frank Vinci said the old warehouse site would be redeveloped into apartments. South Yarra's former industrial pocket, known as Forrest Hill, is being transformed into a "village“ of apartments, hotels, shops and offices. Icon Developments has several other projects under way in Melbourne, including a nineshop retail development in Hawksburn Village, a Coles Supermarket in Fitzroy, and a 62-apartment project on Inkerman Street, St Kilda, with Neometro Projects. It is believed Icon paid about $2 million for its Claremont Street site, but this could not be confirmed.   News of developers buying into South Yarra follows reports last week that the Fun Factory site nearby, at the corner of Toorak Road and Chapel Street, will be developed into a 38-level apartment building, offices and retail.

THE POINT ON MARKET - The Age [Saturday, July 19, 2008] This year is fast shaping up to be the year of the iconic restaurant sale, with yet another high-profile venue coming to the market, this time in Albert Park. Landmark restaurant and bar The Point, at the end of Aquatic Drive, has been put to the market by its owner operators. The freehold and business could fetch as much as $8 million, local industry sources speculate. The Point includes a restaurant and two function rooms, all with views over Albert Park Lake. Vinci Carbone Property director Joseph Carbone says he expects The Point to draw interest from local, interstate and international operators, given the venue’s popularity and position. Earlier this year, the Observatory Café at the Royal Botanic Gardens said to former avionics engineer George Koumantakis, of eastern suburb café institution Car Park fame. The Mt Rael Retreat in Healesville, a high-end restaurant and accommodation house popular with international guests, has also put to the market this year. In November last year, London-based hospitality outfit Match Bar announced it would open a high-end bar on the third level of the QV building, where it leased about 600 sqm.

AGENCY ON THE RISE - The Age [Saturday, June 28, 2008] Former Trinity schoolmates Frank Vinci and Joseph Carbone will team to create a new service – focused real estate agency they believe will fill a void in the market. Mr Vinci, sole director of middleweight agency Vinci Partners and Mr Carbone, who was until recently a Senior Associate Director with Gross Waddell, will share control of Vinci Carbone Properties, based in Collins Street. Mr Carbone said rather than handle a multitude of properties for a large number of clients, they intend to handle the specific needs of a select group of clients. Over the past few years, this client list has included Macquarie, Foster’s and the Liberman family. The new agency will sell and buy properties for clients anywhere along the east coast.