Charter Keck Cramer Launch Divestment Strategies for Prime Sites

Charter Keck Cramer (Charter), is coordinating the divestment of two of the largest and most strategic development sites currently available for sale in the Melbourne and Sydney property markets.

As Transaction Advisor and through extensive preparatory commitment, Charter Keck Cramer predicts significant value uplift to be realised in the sale of 308 Exhibition Street, Melbourne and 12-13 Birnie Avenue, Homebush, Sydney.

On behalf of Telstra Corporation Limited (Telstra), Nick Ashton, National Director, is overseeing the sale of circa 4,040 sq.m. at 308 Exhibition Street, Melbourne.

Charter was contracted by Telstra in April 2009 to coordinate its National divestment program, with 308 Exhibition Street being the largest divestment opportunity to be publicly offered for sale by Telstra in over a decade.

“Larger-scale CBD sites are expected to become more sought after and in turn more valuable, as they don’t carry the building setback constraints of smaller sites. Accordingly, we expect 308 Exhibition Street to generate a significant level of interest from both local and offshore developers and investors,” said Nick Ashton.

Input from appointed selling agent CBRE and Charter’s in-house Research, together with a coordinated design team led by architects, Bates Smart, support a substantial mixed-use development opportunity (STCA) for the site.

“The highest and best use is considered to be for a mixed-use development, with research informing us that an integrated retail podium and upper level residential and/or a combination of hotel and residential components is anticipated (STCA),” said Nick Ashton.

Charter operates in an advisory capacity for Swire Cold Storage (Swire) across a number of its properties Nationally. Sydney’s 12-14 Birnie Avenue, Homebush has been identified as surplus to requirements and for the past two and a half years, Charter has been undertaking a rezoning process.

The 3.15 hectare property forms part of the Carter Street Priority Precinct, which is a NSW Government-endorsed rezoning initiative, allowing for the renewal of existing industrial land to a mix of housing, employment and retail services.

“With The Goodman Group selling three adjoining tranches of land off-market in 2015, the Swire site represents the last remaining mixed-use and residential development opportunity within the Carter Street Precinct, one of Sydney’s fastest growing suburbs.”  said Clint Jellis, National Executive Director.

Through establishing an intimate understanding of both 308 Exhibition Street and 12-14 Birnie Avenue, Charter Advisory has completed comprehensive pre-sale due diligence, positioning the sites to deliver significant value uplift.

The marketing campaign for the sale of 308 Exhibition Street launched on 15 February 2016 and International Expressions of Interest will close on 23 March 2016.

The marketing campaign for the sale 12-14 Birnie Avenue is underway via an Expressions of Interest closing 17 March 2016.

For more information about Charter’s Transaction Advisory services, please contact Nick Ashton (0413 778 700) or Clint Jellis (0412 221 762).