Spinning glass

South Melbourne sets a ‘new benchmark’

The Age .

Sydney-based Pallas Group has snapped up a South Melbourne property, paying $8.55 million at a mortgagee auction for 67-69 Palmerston Crescent.

The final price was well above the $5.5 million reserve quoted by Savills agents Clinton Baxter, Jesse Radisich and Benson Zhou, who managed the auction in conjunction with Melbourne Acquisitions agents Dominic Gibson and James Latos.

The event was reportedly well attended with a who’s who of Melbourne development sector in the crowd. Title deeds show the property was owned by Peter McQueen’s Palmerston Property Development. Mr McQueen paid $6 million for the building with a 2.5 year settlement, which took place in March 2019.

Manda Capital held the mortgage on the two-storey property which is on a 592sqm site. The bumper price ensured all parties got their money back.

Mr Baxter said ‘‘The sale set a new benchmark for the value of inner suburban development sites and demonstrated that the market has well and truly rebounded from its 2018-19 slump.’’

Pallas Group director Charles Mellick said it will become the site of a new $38 million nine-level building housing the group’s Melbourne headquarters and renamed Pallas House.

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