I visited the Lumley Court site in Prahran today.
Once directors and major shareholders visit this site they will know they have been played for suckers.
Lumley Court consists of just 4 properties. On one corner is a small dilapidated apartment block. On the other corner is a large contemporary home that serves as an occasional public art museum with showings hosted by owners Charles and Leah Justin
www.jahm.com.au
The third building is an unattractive three level multi-unit complex – 21 units in total.
The fourth building is a very old orange brick two storey apartment block. This building comprises four apartments; it would seem to have been purchase by Grange.
Lumley Court is quite narrow and no longer than 60 metres in length ending in a tight court shape. At the top of the court is a small park – Lumley Park.
The Grange investment has severe overlooking issues from the blocks of apartments immediately to the rear of the property in Rae Court. These rear apartments are unattractive, in as poor a condition as Grange is and will present very difficult design and build issues.
As a whole Lumley Court is a very unattractive location and not close to any village type attractions that well heeled property buyers would be expecting.
The site configuration in conjunction with the short narrow street will pose significant logistics issues as the majority of the site will be under build and therefore no space for load/unload and movement of materials. Crane on/crane off in the street will be difficult as this will drive all residents mad for the likely two year demolish/build duration. I can foresee headaches galore with the notoriously difficult Stonnington Council.
The surrounding streets have few contemporary homes and mainly consist of old two and three level blocks of units. The proposed building by Grange would be more at home in the heart of Toorak surrounded by similar properties.
Domain Real Estate property report states that 2 bedroom units in Prahran have a median value of $644k, with low at $475k and high end $1.075m
Prahran has 44% home ownership and 56% renters
Prahran households comprise 27% families and 73% singles.
As mooted Grange has paid about $3.2m for the four apartments and the final development costs per the 2017 building application state $4million.
So over a two year development including all costs and interest there is at least $8million sunk into the venture. So good luck trying to sell 5 apartments, in a poor location for $1.6million each just to get funds back. Who pays Will Slade’s wages in the meantime.
This property JV is a fiasco and hasn’t started yet.
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