Vicland's Bill McNee pays $80m for Toorak Rd Shops
In a deal that could recalibrate commercial land values in Melbourne’s most exclusive suburb, property developer Bill McNee has paid $80 million for the Village Way shopping arcade in Toorak Village.
Mr McNee, who runs prominent development business Vicland, acquired the suburban mall at 489-505 Toorak Road in an off-market deal from its long-time owners, the Allen family.
The property comprises a 2594-square-metre site with the arcade fronting Toorak Road and a car park at the rear running to Jackson Street. The deal equates to a land rate of more than $30,000 per square metre.
Two years ago, a two-level building in Toorak Village sold for $7.3 million at a land rate of more than $17,000 per square metre.
Mr McNee told The Australian Financial Review he had jumped on the opportunity to acquired a “significant property in Toorak Village”.
“It’s almost impossible to buy something like this – it’s been owned by the same family for about 100 years – so when the opportunity came up to purchase it I took it,” he said.
Mr McNee said he was considering a number of options for the site, which is a designated development site in Toorak Village.
Village Way has about 15 shops with tenants including Haigh’s Chocolates, Persian art and jewellery store Mayan Craft, Sushi Gallery and Ethereal Wines.
The sale of the Village Way was brokered by Brett Duncan of Matthews Lincoln.
Title deeds show the mall is owned by Cambrik Holdings whose directors include Cairo-born Richard Allen, Montreal-born Kingsley Allen as well as younger generations of the Allen family. Mr McNee placed a caveat on the site at the end of June.
Mr McNee’s Vicland is currently developing a mixed-use office and retail project on Toorak Road, South Yarra, and a $185 million residential and commercial tower in Brisbane’s Fortitude Valley.
Last year he paid $12.6 million for a multi-level car park abutting Chapel Street’s Jam Factory at 11-13 Wilson Street.
While many Melbourne developers are complaining of doing it tough, Mr McNee said the market was on the rebound. “Things are happening. It’s always been a fantastic market.
“It’s very strong and positive and has been so for a long time. It’s only a bad market if you have too much debt,” he said.
“Last year I settled 184 apartments [at Vicland’s $290 million Spencer development in West Melbourne] in one day. That’s $124 million of sales in a single day. I don’t see the doom and gloom.”
Mr McNee also commended the Victorian Labor government for its infrastructure investment program, at a time when many of his peers are attacking the state government for its stamp duty policies.
