Diversified property group Salta has sold its 50 per cent stake to long-time co-owner Medich Corporation, while retaining shared ownership of adjacent land on Cramer Street earmarked for future residential development.
The move marks the end of an era and the beginning of new prospects, balancing the desire to preserve tradition with the need to look ahead.
According to Salta, the divestment will free up resources for reinvestment in priority areas such as the fast-growing build-to-rent sector, as well as industrial and commercial portfolios.
“Today’s property market dynamics do not support immediate investment in a project of the scale proposed,” said Managing Director Sam Tarascio. The company is pressing ahead with a $500 million project at Victoria Gardens in Richmond, while another building is in the planning phase at Docklands.
“The decision reflects our strategic focus on realising projects where we can turn dirt and deliver in the near term,” Tarascio added.
“We’re having to be more considered about our pipeline and ensure we are focussing on projects that stack up for us as a business.”
The partnership between Salta and Medich at Preston Market dates back to 2004, when the two groups bought the site with plans to transform it into a mixed-use, transport-oriented precinct. But complex planning processes and new heritage controls introduced in 2023 forced significant revisions.
Since 2018, under mounting government pressure, the market has been at the centre of heated debate and repeated redesigns. Just two years ago, Planning Minister Sonya Kilkenny imposed further oversight with the introduction of a Heritage Overlay and Development Plan Overlay, designed to protect the market’s historic value while allowing some redevelopment.
“Both parties have put a lot of time and investment into ensuring our plans could deliver an outcome that would balance housing needs, while prioritising the preservation of the market’s character and its traders,” Tarascio said.
Against this backdrop of uncertainty, local traders are cautiously optimistic.
Kristian Gandolfo, owner of Italian pasta and delicatessen shop Mariluci, admitted that “the past two years have brought a lot of uncertainty”.
“While I believe the future of the market depends on the broader Australian economy, I also think the new owner wants to grow the market and give it a bright future. We just have to wait and see what their plans are.”
After years when “it felt like the market might close”, Gandolfo noted that business is improving. “We’re seeing customers coming back and more people are shopping here regularly again,” he said.
Kristian Gandolfo, owner of Italian pasta and delicatessen shop Mariluci
Domenic Mollica, who has run MnM Fruit with his wife and in-laws for the past 18 years, also expressed hope for a fresh phase of stability.
“We hope that now, with a single owner truly focused on the market, it will have a long life and finally receive the much-needed works. The building is more than 50 years old, it’s falling apart and needs a lot of maintenance,” Mollica said. “We’re confident the works will be done and that the market will stay here for another hundred years.”
Mollica also recalled the political wrangling that has long surrounded Preston Market. “The plan to temporarily relocate traders within the market during construction made sense; it would have let us keep trading,” he said.
“That’s where the misunderstanding began. Some people turned it into a political circus just to gain votes and win a seat in Parliament. And they nearly succeeded, since Nathan Lambert, now the MP for Preston and Reservoir, won by only a handful of votes.”
Domenic Mollica from MnM Fruit
Meanwhile, Darebin City Council responded with cautious optimism, stressing that it has “consistently advocated with the community to highlight the importance of Preston Market”.
“Through the recently adopted Council Plan, we have committed to continue to proactively protect Preston Market’s social, cultural and historical value for generations to come, engaging with community and supporting the Preston Market Traders” said Mayor Kristine Olaris.
“Council will seek to urgently meet with Medich Corporation, now the sole owner of Preston Market, ensuring we continue to have a positive relationship and enabling us to elevate the voice of our community.
“The Preston Market is often called the beating heart of our community and for good reason. We will always advocate for its protection.”
The ownership change closes a major chapter in the history of Preston Market and opens a critical new one: finding a lasting balance between commercial continuity and new opportunities for residential growth.
