MADDOCKS’ PROPERTY group facilitated the exchange of contracts for Sydney-based Valad Property Group Ltd during the purchase of the former Pentridge Prison site in Coburg for $42.5 million.
Valad, a listed property investment fund, is planning to develop the Melbourne site with joint venture partner Abadeen Group. Construction of 63 apartments is expected to begin as soon as part of a $530 million retail and residential project.
The sale transaction was led by Maddocks’ property partner Nick Holuigue.
“The sale proved to be a complex transaction including large scale due diligence management, facilitating Valad stepping into and negotiating the terms of an existing construction contract, existing pre-sale contracts, various lease and licence agreements and managing existing litigious disputes,” Holuigue said.
Negotiation of the terms of the contract of sale for the 6.5-hectare site necessitated consideration of a vast array of development issues ranging from contamination to ongoing strategies for facilitating development over 8—10 years within existing bodies corporate and particularly the new Owners Corporation Act 2006. To this end, an extensive due diligence report was prepared covering off on key development issues.
Holuigue led a team including Anthony Leggiero, Sze Lin Foong, Amanda Chew and Nathan Lowenstein. They worked closely with tax and revenue partners Leigh Baring and Michael Taylor-Sands on the joint venture agreements, structure and GST aspects of the transaction, supported by Rebecca Sergeant, together with banking and finance partner Ian Beattie, M&A partner Jonathan Ambler with Andrew Kaynes and construction and major projects partner Greg Campbell with Simone Holding on the construction contract.
“Because it was such a large transaction and multifaceted we had to draw on a lot of facets of the firm which is something we see as recognition of our ability to service large scale and complex property transactions,” Holuigue said.
The development will add to the Pentridge Piazza neighbourhood, where residents have been living in the already completed Industry Lane apartments and townhouses for some time.