This article is from the Australian Property Journal archive
DEVELOPER Hengyi has acquired the historic Beachleigh Estate site in the Mornington Peninsula from Peninsula Health and Victoria’s Department of Health and Human Services for $17 million, but will need to navigate recently introduced heritage controls for any prospective development plans.
Across two titles overlooking Canadian Bay, the elevated 33 Jacksons Rd property in Mount Eliza covers 3.41 hectares and is zoned General Residential, and features 198 metres of frontage to Jacksons Road and 200 metres of foreshore frontage.
Initially developed in 1878 as the private Beachleigh residence, the site later became home to the 1930-built Orthopaedic Branch of the Royal Children’s Hospital, used to treat polio and tuberculosis. It was then used for aged care and, more recently, administrative purposes, and is also known as the Mount Eliza Centre.
The site had been put to the market in 2017 in a separate campaign before a demolition permit was sought by an interested party. In response, Mornington Peninsula Shire secured heritage controls over the hospital building, followed by planning minister Richard Wynne issuing heritage overlays for the administration building, a former treatment ward and the chapel.
CBRE’s Mark Wizel, Lewis Tong, Bianca Butterworth and Ashley McIntyre, who handled the sale, said the price represented a record for the Mornington Peninsula with a land rate of more than $495 per sqm.
Wizel said that despite some “obvious challenges around future uses”, nearly 100 enquiries were received and seven genuine expressions of interest.
Enquiries came from both local and offshore developers, hotel and leisure operators and high net worth individuals that were looking for a variety of development outcomes, from residential to education and aged care and retirement living.
Hengyi general manager, Simon Manley, said the group is “acutely aware of the rather unique aspect of the location on the Golden Mile and its heritage status”.
“There are few sites quite like this one and we want to make sure that our development is both sensitive and respectful of its surroundings and the environment.
“We don’t have a set idea at the moment, and of course we will need to work with zoning and site restrictions, but we are excited about delivering a very special, high end, product to the local community.”
He said that while Hengyi would like to get something off the ground as soon as possible the emphasis would be on getting it right.
Butterworth said improved development outcomes and greater certainty in relation to the site’s potential since 2017 had sparked renewed investor and developer interest.
“Our advice that Beachleigh had the potential for residential, aged and health care, education and retirement living, subject to the relevant planning approvals, along with the flexible General Residential Zoning, was well received by interested parties.”
McIntyre said improved access to Mornington Peninsula via the $759 million Peninsula Link project had also been a consideration.
Nearby, New Zealand-listed Ryman Healthcare is looking to develop a retirement village and nursing home on Moondah Estate, which it acquired in 2016 for $37.5 million, while the 62.23-hectare Morningstar Estate recently was picked up by Zhongou Corporation for $36 million two years ago.
Hengyi has recently completed the 72-level, 1,039-apartment Swanston Central tower on the former Carlton and United Breweries site at Carlton, on the top edge of Melbourne’s CBD, which follows its 69-level Light House project at 450 Elizabeth Street with 627 apartments.
