Jetstar Airlines home in Collingwood for sale, could become a $65m development opportunity
79-81 Victoria Pde, Collingwood, is home to Jetstar, but is now up for sale.
The Collingwood home of budget airline Jetstar has been listed for departure, with developers expected to pay $65m to bring in the bulldozers.
The 79-81 Victoria Pde address is leased by the Qantas subsidiary giving the next owner a shot at being the discount carrier’s landlord.
However, it is expected to be developed in the near future with all tenancies at the property to expire in 2027 providing scope for the three-storey building to be increased to a 12-floor complex.
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It is owned by Henkell Brothers Investment Managers — headed by Australian-German philanthropist Hans Henkell, who has provided extensive support for Victoria’s opera industry.
It is up for sale for the first time since 1997, with the airline taking up residence in 2013.
Colliers residential development sites national director Josef Dickinson is among those working on the sale and said they expected interest from pre-eminent housing developers from across the country and even international build-to-rent operators.
“This is a redevelopment play,” Mr Dickinson said.
“You can get some pretty good density on this site and it feels to us that the highest and best use is to redevelop — but we aren’t ruling anything out. There could be big mixed-use players and there may be some interest in repurposing the existing building.
“But it will certainly be one of the bigger sales of the year.”
However, he was not certain when the high-profile site would begin to be reshaped.
Victoria faces challenging conditions for development as building costs remain elevated and apartment approvals fell to their lowest level since 2009 in the Australian Bureau of Statistics’ June data — with just 7419 given the nod in the past year.
The expansive site is one of the biggest of its kind yet-to-be developed in the suburb.
CBRE’s Trent Hobart is also working on the sale and said it was the last Commercial 1-zoned corner site with more than 5000sq m of space in the suburb.
“This is the perfect site that fuses East Melbourne luxury with chic Collingwood, coupling with some of the best view lines back to the CBD skyline, MCG and stunning parks in between,” Mr Hobart said.
As it stands, the property includes a 227 space commercial carpark and is fully leased across three tenancies — including Jetstar.
However all leases and options will end in 2027, opening the door for development.
In the past few years major developments along Victoria Pde have included a $454m redevelopment at No. 288 by Mirvac and a $280m project at the corner of Wellington St by Tim Gurner.
Expressions of interest for 79-81 Victoria Pde close at 2pm August 30.
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