This article is from the Australian Property Journal archive
REAL estate group Oliver Hume has reportedly sold a West Melbourne development site at a loss, accepting around $17 million for the 3,600 sqm site it acquired in 2015 for $18 million.
Formerly home to Don Kyatt Spare Parts, the 164-184 Roden Street city fringe corner property was offered to the market with approval for a seven-level, 157-apartment development.
Oliver Hume had to scale down its initial plans for 200 apartments after residents successfully objected to the project at VCAT.
Fairfax has reported the decision meant a hefty cut to Oliver Hume’s potential yield from development on the site.
The site has an existing multi-level office and warehouse building of 8,013 sqm.
Also on Roden Street, developer DCF has put a four-level block of eight townhouses to the market, having held the site after completion for multiple years. It is hoping to fetch $9 million from the sale, having paid $2.6 million nearly five years ago for the 14-20 Roden Street property.
At the end of last year, United Asia Group put the 1,304 sqm Flagstaff City Inn site at 45-55 Dudley Street to the market, little more than 18 months after acquiring the property for around $20 million.
The group secured approval for a 25-storey mixed-use tower with a 212-room hotel, 11 apartments, office space and a three-level basement car park with 100 spaces, having had initial plans for a 32-storey building shut down.
The site currently has a three-storey building with 42 rooms, conference centre and restaurant.
Late last year, Grindana, overseen by Stockdale & Associates, sold the West Melbourne island site at 115 Batman Street for $22.1 million, less than two years after spending $16.05 million on the property.
Zoned for mixed use, it has a four-level office building leased to Norman Disney and Young and Probuild, and returns more than $1.154 million per annum.
Australian Property Journal
