20/01/2011 - 00:00

Richmond office buy for local JV

20/01/2011 - 00:00

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A JOINT venture between two Western Australian companies has bought two office buildings in Richmond, Melbourne, in recent months, paying about $30 million for the two.

Richmond office buy for local JV

A JOINT venture between two Western Australian companies has bought two office buildings in Richmond, Melbourne, in recent months, paying about $30 million for the two.

Wealth management firm Security Capital Corporation and property manager Property Bank Australia have taken the opportunity to capitalise on Melbourne’s burgeoning office market.

Office vacancy rates in the Melbourne central business district are down to 6 per cent as of December 2010 as the city recovers from the global financial crisis, with vacancies falling 20 per cent over the last year.

SCC and PBA are part of a network of private WA companies owned and operated by local businessmen Rodney Shea and Colin (Sandy) MacKellar.

Mr Shea is the director of SCC, which is wholly owned by two of his subsidiary companies, Bagnell Pty Ltd and Lessar Pty Ltd.

Mr MacKellar is the director and majority shareholder of PBA. Christopher Glass is a fellow director.

The joint venture paid $11.3 million for a 3184-square metre property in Church Street, Richmond, with a yield of about 7 per cent.

Late last year, it also bought another Church Street property, paying $18.35 million for 5122sqm with a yield of about 9 per cent.

Both Mr Shea and Mr MacKellar were involved in the development of the Smiths Beach Resort in Yallingup, a redevelopment of the old Canal Rocks resort.

The Smiths Beach resort was completed in 2007 and contains 60 one to four bedroom apartments, villas and houses, as well as a bar/restaurant on 22,500sqm of beachfront land.

Unlike its controversial counterpart, the greenfields Canal Rocks development that was the subject of a WA Corruption and Crime Commission investigation, the resort passed through council and public approvals without incident.

Australian Securities and Investments Commission records show the men are involved in many of the same companies and hold directorships of numerous private companies, mostly in property and financial services.

ASIC lists both Mr MacKellar and Mr Shea as directors of Finander, Joint Venture Management, Security Capital Funds Management, Bathers Restaurant at Smiths Beach and Garnsworthy.

Mr Shea is a director of Australian Superannuation and Compliance and Security Allied Finance.

Security Allied Finance is managed by Russell Green, who is also a director of Bagnell, the trust firm that owns SCC.

The joint venture’s Melbourne purchases follow last year’s acquisition of a property in North Sydney for $20 million.

Colliers International brokered the most recent Richmond purchase on behalf of a Melbourne family company. The Sydney property was bought from property group Becton.

Richmond is becoming a popular destination for office space because of its position on the fringe of the Melbourne central business district.

WA Business News contacted both PBA and SCC for comment.

 

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