Pentridge Prison development site sold by Future Estate for $12.8 million
The development company, Future Estate has finalised a $12.8 million Coburg sale of three lots totalling 9,203sqm of its larger Pentridge Prison site.
The holding sits amid the substantive urban renewal project, Coburg Quarter.
The purchaser, Golden Sunrise secured permits for 294 apartments across three buildings.
Future Estate purchased the distressed asset from receivers three years ago for $4 million.
“When we purchased the former Pentridge Prison site in 2014, our valuations estimated we had secured it for a third of its market value,” said Future Estate managing director, Ben Anderson.
“Now, 18 months on, we have this sale and the 250 per cent return on investment it produced to verify our initial calculations – the site which we acquired for 30c on the dollar, is actually worth $73 million.”
One Coburg Quarter, Fuure Estate's first residential building is 90 per cent sold off market.
One Coburg Quarter has 148 apartments.
Future Estate’s masterplan will see the developer transform the remaining portion of its 4.2ha site into a mixed-use residential community in which open civic spaces, professional services, a diverse retail offering and a new eat street.
“This sale not only means our debt is reduced, it means we are able to reinvest in other ventures within the precinct and deliver the extensive public amenities we have planned, which include a micro-brewery and wine bar, up front,” said Anderson.
"Rather than have these three permit-approved sites sit there for 36 – 48 months until we are in a position to develop them, we have chosen to bring in another developer, with whom we can work simultaneously to make this community a reality."
The sale was through Colliers International and Savills.
The property was listed as for sale by expressions of interest, closing on August 10.
Future Estate and fellow developer Shayher Group own the former prison, which was once home to notorious inmates such as Ned Kelly and Squizzy Taylor.