The fund held a 3,880m² site with a 470-bay car park, with strong income overlooking the Yarra River. A key tenet of the Fund strategy was to pursue value adding opportunities to maximise rent through additions and conversion to alternative uses. However, a VCAT decision in 2022 to reject the Fund’s planning permit application diminished this potential near term. Despite the setback on planning approvals, the asset was sold for $14.6 million to a private investor.
Despite being unable to deliver the primary redevelopment objective, we preserved capital and generated an acceptable return — a testament to the importance of buying well and holding multiple potential investment strategies.
