On The Street

The Age

Wednesday August 23, 2000

On the right track

The launch of the construction stage of the St Kilda railway station revamp has set tongues wagging in the development world after guests were treated to an extravaganza of entertainment.

A sound and lighting show and a performance by the Adelaide-based Bobcat Ballet was a giant leap from the traditional minister-turning-the-first-sod photo opportunity.

Several hundred guests, including many property identities, such as shopping centre owner John Gandel, were treated to an opera performance by two large earth-moving machines.

The former St Kilda railway station was also officially renamed Metropol St Kilda by the Transport Minister, Peter Batchelor (pictured above left with Port Phillip mayor Julian Hill).

Mr Batchelor drove a tram to the function.

The official sod-turning ceremony involved the Deputy Premier, John Thwaites, and the team of partners involved in the project.

The $55 million redevelopment will include 115 apartments, a David Jones food store and 20 retail outlets, including restaurants and bars.

Moving on

An investment apartment in sought-after South Yarra had delivered a healthy rental income for owners Alan and Jenette Pickering, who have spent a lot of time overseas in recent years.

But the couple recently bought a family home in Caufield and decided to sell the apartment at 28/21 Park Lane when they got back to Australia four weeks ago. It went for $500,000 at auction last week.

The Mirvac-built apartment had been earning $2200 a month. However, rental return was not key to the Pickering's investment.

"We looked to get a good rental from it, but I always had an agreement with the agent that they would take a fraction less to make sure we always got the best tenants, and we have never had a problem with a tenant," Mr Pickering said.

As a result, the apartment was vacant for only four weeks in the 10 years they owned it.

With three bedrooms, three bathrooms and broad, light-filled living areas overlooking Fawkner Park, the elevated, ground-floor apartment was let to a string of corporate tenants who treated it as their own.

The Pickerings paid close to $400,000 for the investment. Despite the growth in values over the decade, they believe the Melbourne real estate market continued to offer good investment opportunities.

"At the moment, the opportunities for returns are there in the right locations for investors," Mr Pickering said.

"Position, position and position are the first three things in buying real estate, and South Yarra offers those three things," he said.

Also there was ...

Standing head and shoulders above a Mary Street auction crowd was Oarsome Foursome member James Tomkins (pictured carrying the Olympic torch). The auction was within a stroll of his home, but the rowing giant vanished before he had a chance to chat with On The Street about his property's prospects. The auction was all but interrupted as it was passed by a carload of lofty oarsmen towing a trailer brimming with boats. Was James heading for some pre-Olympic training?