New Look For Cross Centre

Sydney Morning Herald

Monday May 30, 1994

By KATHRYN HOUSE

The dilapidated and almost vacant Kings Cross Village Centre will finally be revamped following its sixth sale in seven years.

The Springfield Avenue centre, once home to the Kings Cross Wax Works, has been quietly sold twice this year - once by the Kajima Corporation which took a loss of almost $7 million on its $8.9 million investment in mid-1987.

The buyer, interests associated with the property investor Mr Paul Veron, held the shopping centre arcade for less than two months before selling it for$2.95 million in a deal negotiated by Charles & Stuart's Mr Andrew Veron and Metro Commercial's Mr Kurt Braune.

The new owner is the Eastern Suburbs investor Mr David Kingston, who has unveiled plans to re-lease the property through the newly-appointed managing agents, Metro Commercial.

Mr Braune said precommitment interest had already been strong, with possible plans for a twin-cinema complex. Anchor tenants such as supermarkets and video shops were also being sought for the remaining 12-13 shops.

The Village Centre has faced an uncertain future during the past seven years, with its parade of owners mooting a string of different redevelopment plans.

The centre was developed by Mr Sid Londish in the 1960s and became the focus of intense speculation in 1987 when it changed hands four times in two months and almost tripled in value.

The first sale, for $3.06 million in May 1987, was to interests associated with the millionaire property developer Mr George Parlby. He on-sold in July for $3.95 million to an investment company which raised plans for a retail development before on-selling the same month for $5.4 million.

The new owners, another private investment company, on-sold days later for$8.9 million to Fibadi Pty Ltd, a company associated with Kajima.

The sales followed the closure of the Wax Works and signalled the beginning of the centre's demise. Kajima launched an international eatery which folded in less than three months and later raised plans to redevelop the centre as a 150-room three-star hotel. Mr Veron proposed to redevelop the centre as a nine-storey apartment block before this month's sale.

PRICE TAG OF A VILLAGE CENTRE

JUNE '85

$2.35m

Bought by Tweu Pty Ltd from LJK Investments and South Pacific Auto Wreckers Pty Ltd.

May'87

$3.06m

Bought by Tujini Pty Ltd from Tweu Pty Ltd

July '87

$3.95m

Transfer to Hachure Pty Ltd from Tujini Pty Ltd

July '87

$5.40m

Transfer to Bowbook Pty Ltd from Hachure Pty Ltd

July '87

$8.90m

Transfer to Fibadi Pty Ltd from Bowbook Pty Ltd

April '94

Approx. $2.00m

Bought by Gabami Pty Ltd from Fibadi Pty Ltd

May'94

$2.95m

Bought by David Kingston from Gabami Pty Ltd (Veron)

© 1994 Sydney Morning Herald

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