This article is from the Australian Property Journal archive
ST Hilliers has sold one of the few remaining super residential development sites at Springvale, in south east Melbourne for $23.5 million.
The Springvale property was acquired as a fully income producing industrial asset in 2006. Following a subdivision, St Hilliers disposed of two investment grade lots to local investors.
The remaining 7.2 hectares of land was rezoned to Residential 1 and part Mixed Use which provides the opportunity for a medium and high density development with associated retail space.
CB Richard Ellis agents Justin Clarkson and David Robertson sold the Villa Rd “super site”, which has the potential to accommodate over 400 dwellings subject to the relevant planning approvals.
St Hilliers Funds Management CEO Nick Ridgwell said a significant up lift in value was achieved through the rezoning exercise and enabled a positive return on unit holders’ funds in what has been a difficult market.
Clarkson said the sale campaign for Springvale had attracted strong interest from a range of development groups.
“A number of competitive offers were received at the close of the Expressions of Interest campaign.
“The keen interest highlights the continued developer confidence in Melbourne’s residential market, with large scale infill sites such as these rarely offered to the market,” he continued.
Robertson said the property’s prime location, some 20 kilometres south east of the Melbourne CBD and less than one kilometre from Springvale and Westall Railway Stations, had underpinned developer interest in the sale campaign.
“A development of this scale within an established middle ring metro suburb with facilities and services already available is unique to this site and is unlikely to be repeated in the near future,” Robertson said.
The site has an Indicative Concept Plan which provides for a new “urban village”, incorporating apartments, small lot houses, townhouses and convenience retail.
The plan earmarks the site for around 300 apartments abutting Westall Rd and Osborne Avenue, with a further 160 houses making up the balance of the potential development. Developers should also be aware that the ICP makes provision for a higher density outcome, if desired.
Australian Property Journal
