This article is from the Australian Property Journal archive
LEND Lease has grabbed the prized Channel 9 studios in Melbourne and has plans for a $400 million development.
Lend Lease yesterday entered into a conditional agreement to acquire the site currently occupied by GTV Channel 9, from General Television Corporation Pty Ltd.
The group did not disclose the price paid, however property sources said it was around $80 million.
The property has been on the market for over 2 years.
In 2007, PBL announced it was selling its Channel 9 sites in Melbourne and Sydney.
However in June 2008, PBL pulled the plug on the $200 million after Charter Hall led consortium were awarded the first rights to purchase the properties.
Although no explanation was provided behind the withdrawal, it is believed that PBL was unhappy with the consortium’s package. After initially making a $200 million offer, the consortium lowered the price to $180 million – $150 million.
The 3ha parcel of land is located in Richmond, approximately 3kms from the Melbourne CBD.
As part of the deal, Channel 9 is will vacate the site within the next 12 months.
Lend Lease’s managing director Steve McCann said the group’s apartment business, Vivas Lend Lease, will look to create a masterplanned residential development on the site with an end value of approximately $400 million.
“The acquisition is in line with Lend Lease’s strategy of securing prime inner urban sites in the key growth markets of Sydney, Brisbane and Melbourne.
“Vivas Lend Lease is a major player in the inner city apartment market and has a significant presence in Melbourne through our mixed-use development Victoria Harbour.
“This development is a great acquisition for the business and builds on our recent wins in Sydney and Brisbane, increasing Vivas Lend Lease’s backlog to circa 5,300 units nationally,” McCann concluded.
Australian Property Journal
