111- 125 A'Beckett Street was a historic site in the Melbourne CBD and was one of the first and iconic Harley Davidson stores located at the North of the Melbourne CBD, a stone's throw away from the Queen Victoria Market, RMIT University and Melbourne Central. The site was acquired in 2015 for A$38 million with the objective to undertake a residential redevelopment. The project was conceptualised as the next iconic landmark along A’Beckett Street where the striking residential tower would retain its heritage frontage while the elegant tower provided magnificent views of the bustling Melbourne CBD and featured unsurpassed amenities with a focus on natural luxury.
TE Capital worked closely with the Melbourne City Council to ensure that the development would activate the Northern CBD and position the Melbourne CBD as a global city of opportunity and choice. Our hands on engagement with Council led to us obtaining a residential development permit with a Floor Space Ratio (FSR) of 35:1, which exceeded the approved planning control that allowed a prescribed FSR of 18:1.
Given the quality of the future development potential and the scarcity of the development permit, we were able to divest the property at A$61 million in 2017, delivering an IRR in excess of 20%.