This article is from the Australian Property Journal archive
NEW Zealand-listed Ryman Healthcare has acquired a 1.2-hectare site in Melbourne’s Highett from failed developer Steller for $28.5 million.
Ryman is aiming to open five retirement villages in Victoria by 2020, and now owns 11 sites across the state.
Steller had sought to diversify into the aged care sector amid the weakening apartments market. The 32-40 Graham Rd Highett site has approval for a retirement village with 90 apartments, a 122-bed aged care facility, and 15 assisted living units.
Ryman recently acquired a Ringwood East site on Mount Dandenong Rd. The 2.2-hectare site is home to the iconic Castello’s Daisey’s Hotel, which was built in 1877, and Daisy’s Garden Supplies, and Ryman plans to build a $200 million, 120-bed centre with dementia care in their place.
The group announced an underlying profit increase of 11.5% to $227 million for the year to the end of March.
Steller had only recently acquired the Graham Rd site, albeit for a little less than $20.7 million. The developer once had a $4.2 billion pipeline of apartment projects, with a heavy presence in Melbourne’s middle suburbs, and collapsed earlier this year amid tough sector conditions and a fallout between founders Nicholas Smedley and Simon Pitard.
Several sites it had earmarked for development were subsequently listed for sale, including 200 Wells St in South Melbourne, for which it paid $23.4 million less than two years ago, and the Continental Hotel in Sorrento, abandoning the $80 million overhaul of the iconic venue being undertaken in a partnership with Julian Gerner.
As well as Wells St, lender OCP took control of sites in Hampton and Richmond, and appointed McGrathNicol as receiver over 13 entities associated with Steller, although Pitard has sought to keep the construction arms afloat.
Another Steller creditor, Sydney-based Atlas Advisors, took possession of 16 sites it has first mortgage over – including the former Greyhound Hotel site in St Kilda, and properties in Cheltenham, Preston and Keilor – and appointed KordaMentha.
Former Steller sites that have sold include 60-62 Nightingale St in Balaclava, for $1.85 million, and 260-264 Highett Rd, Highett, for $3.375 million. More of its assets are expected to be put up for sale.
Nearby in Highett, CSIRO is selling off its former laboratory site of 9.34 hectares at 37 Graham Rd, representing one of Melbourne’s largest infill development sites put to the market.
