This article is from the Australian Property Journal archive
AN offshore Malaysian developer has paid around $10.65 million for a prized Melbourne CBD fringe corner site with permit approval for a 13-level student accommodation tower.
Oliver Hay, Daniel Wolman and Guy Wells of Colliers negotiated the sale of 81-89 Bouverie Street in Carlton, following an expressions of interest campaign that received 12 written offers, and marked the first the site had been offered for sale in more than 70 years.
The 462 sqm site is currently a Bridgestone Tyre Centre outlet and sold on an incredibly sharp 1.00% yield on the passing income.
It has three street frontages, including to Queensberry Street, totalling more than 63 metres and is close to the University of Melbourne, RMIT University and Queen Victoria Market, as well as ample train and tram options.
The permitted student accommodation project would be just metres from Cedar Pacific’s 13-level facility at 123-135 Bouverie Street, which will be operated by UniLodge and accommodate 648 University of Melbourne students, and the 648-bed $60 million facility at 108-128 Leicester Street.
Also nearby, Scape Student Living is believed to have paid around $31.5 million for the 1,600 sqm site at 558-566 Swanston Street, which Besgate put to the market alongside two CBD assets.
It sold with a permit for a 12-storey tower with 159 apartments, but Scape is planning a 500-bed student accommodation facility.
Scape is about to start constriction of its 800-bed facility at 97 Franklin Street, and on its 650-bed project at 557 Swanston Street, on part of the former CUB site.
It opened a 700-bed tower in February at 393 Swanston Street.
Australian Property Journal
