At the south-east corner of Dudley and Spencer streets in West Melbourne, the 2250 square metre property and permit is understood to be selling for about $35 million to an offshore builder.

The vendor, local businessman Paul McBain, paid $3.5 million for 420 Spencer Street in 2001. The site is identified by a distinctive art-deco building which rises to three levels and which was developed in 1930 as the headquarters for Australian Glass Manufacturers. It was later occupied by the RAAF and more recently as a Nightingale Electrics store.

Former ALP Planning Minister Mary Delahunty in 2003 controversially approved that the historic building be replaced with a 26-level building which at 83 metres was more than twice the area's Design and Development Overlay limit.

In 2011, Mr Guy approved a 32-level complex with 368 units, which would instead retain the historic facade. Eight months ago he amended the permit to allow a 38-level, 438-unit complex.

None of these approved apartments were offered to the market and instead, in August, the site was listed for sale via Colliers International director Matthew Stagg and Daniel Wolman.

At that late-February meeting, Mr Guy also approved a thin 55-level mixed use building for airspace atop the historic Makers Mark building at 464 Collins Street. That site was also subsequently listed for sale and recently reported as under offer.

Life in Brunswick East 

With the ink barely dry on a $145 million contract to sell a landmark Southbank site, local developer Banco has gone north-side, snaring a massive Brunswick East parcel before it hit the market.

The 8700 square metre industrial block at 139-149 Nicholson Street is currently a commercial laundromat. It was purchased for a speculated $15 million in a deal negotiated by Savills' Nick Peden and Julian Heatherich just before marketing was to begin.

The laundry block is next door to the 1.9 hectare property that Banco bought at a depressed time in the market in 2010. Almost twice the size, this block known as 127-137 Nicholson Street also cost Banco $15 million. It was for years a Tontine Pillows factory and at one stage it was owned by the failed Letten Group of Companies.

Banco's Brunswick East block is now expected to make way for a major mixed-use village with apartment towers. The developer builds residential and commercial products.

In June, Banco sold a two-hectare Southbank site with four street frontages to Malaysia's PJ Development Holdings. The frontages are expected to make way for at least six skyscrapers.

New era dawns

A new era will begin in Fitzroy North with MC Labour Services leasing all of a prominent Queens Parade building that was for decades owner-occupied by Clipsal.

MC Labour Services  – which, among other things, employs specialists in the construction, civil and engineering and mining fields - will relocate from smaller Carlton offices to the 2531 square metre Queens Parade building, in a tree-lined section of the inner city.

The sizeable 3177 square metre property with 24 car parks was leased by Vinci Carbone's Frank Vinci and Joseph Carbone and Jones Lang LaSalle's Peter Sprekos. It was asking rent of $120 per square metre, per annum.

MC Labour managing director Marc Lunedei said the new building would accommodate offices, training rooms and storage needs. He said the central location – not far from freeway networks and the CBD - puts it in easier reach of more clients.

Clipsal relocated to Notting Hill in June last year. A few years earlier it closed a Bayswater electrical parts facility after relocating those functions to Gepps Cross in South Australia.

Country Life

For the price of a high-risk apartment in the inner city, an investor has purchased a regional commercial asset likely to be fuss-free at least until the end of the decade.

The Beechworth Squash and Fitness Centre sold for $520,000 on a high yield of about 8.1 per cent, according to Lupsons Beechworth agent Rod Devlin.

As well as a purpose-built sports facility the property includes a portion of land which can be developed for residential or commercial. Zoned Residential 1, the Mellish Street property spreads over 2400 square metres. The health club just signed a lease committing until at least 2019.

Not New in Kew

The owners of Melbourne-born global fashion empire Forever New are continuing to quit Kew.

Dipendra and Amanda Goenka can expect about $10 million from the sale of three High Street properties that the company formerly owner-occupied.

Established in 2006, Forever New trades from 250 outlets in seven countries.

It has just leased a new 3500 square metre headquarters, being the top two levels of the Botanicca 8 building near the Yarra River in Richmond. Botanicca 8 space was for lease via Colliers International's Travis Myerscough.

The redundant Kew buildings are now being marketed by his colleague, selling agent Peter Bremner.

The largest block is 722 High Street, which covers an area of 1275 square metres. It is divided by Wright Street to 720 High Street, on 949 square metres. The most modern building is 714-716 High Street. Predominantly glass, the double-storey, 902 square metre office on a 750 square metre block with 10 car parks, is the most likely to be retained as an investment.

As well as the offices, the Goenkas recently listed their nearby Kew mansion with a $9 million price tag.

Reach for the sky

Plans for what may be Melbourne's densest apartment tower have been lodged to replace a low-rise car park at 399 Little Lonsdale Street.

The applicant is seeking to replace an 854 square metre block with a 58-level building that would contain 567 flats and 60 car parks.

It would replace a permit for a more modest 39-level, 219-unit complex.

Last month, and in what city agents call a landmark application, the new owner of an 849 square metre block at 63 Exhibition Street applied to build a 67-level tower containing 553 flats.

In both the Little Lonsdale and Exhibition street applications, the majority of apartments are recorded as studio hotel suites.

Email: marcpallisco@gmail.com
Twitter: @marcpallisco