The Catholic Archdiocese of Melbourne has sold a nine-story office building at 228 Victoria Parade in East Melbourne, a move that continues its asset sell-down program to meet financial obligations arising from historical abuse claims. The property, named James Goold House, was acquired by Shor Property + Development, a newly formed investment entity supported by Justin Liberman, Paul Solomon, Adam Rogers, and Steve Fein. The purchase price fell below $20 million, according to industry sources.
The building covers 5,200 square meters across 1,016 square meters of land, offering panoramic views of Fitzroy Gardens and the Mary MacKillop Heritage Centre. It includes 60 basement parking spaces and holds a 4.5-star NABERS rating, classifying it as a premium-grade asset. The Archdiocese sold it with an existing leaseback arrangement that expires in January, emphasizing its potential for redevelopment, such as conversion to residential units or a strata subdivision.
Investors secured a strong yield, potentially exceeding 11 percent, based on the short-term rental terms established by the Archdiocese. This transaction aligns with Shor’s broader strategy, as the firm previously acquired 11 Queens Road in May as part of its development-focused approach. The Archdiocese had earlier disposed of 384-388 Albert Street for $10.54 million and later sold adjacent properties at 402-408 Albert Street for $11.36 million to an entity connected to 7-Eleven heiress Deborah Barlow.
Funds from these sales will support Archdiocesan programs, as the building no longer fits its current operational needs. Operations will relocate within the St Patrick’s Cathedral complex. The disposals come amid ongoing financial strain, including settlements tied to abuse claims investigated by the Yoorrook Justice Commission. The Archdiocese oversees approximately 350 properties with a combined insured value of $3.3 billion, including the Don Bosco site in Brunswick, which operates as a homeless shelter.
Development companies view such properties as attractive opportunities for adaptive reuse. As Melbourne’s commercial real estate sector evolves, investors may favor flexible spaces over traditional office configurations. The Archdiocese’s approach, divesting from underutilized assets while preserving core holdings, could influence how other institutions manage similar financial challenges.
The Archdiocese originally purchased 384-388 Albert Street in 2021 for $13.3 million, illustrating how property values in the area can fluctuate. The sale was overseen by Cushman & Wakefield, showing the building’s appeal to investors seeking high returns in desirable locations.
