This article is from the Australian Property Journal archive
MALAYSIAN developer UEM Sunrise Berhad has snapped a prized Collingwood property, currently home to the Honda, Nissan and Hyundai dealerships for $43 million, highlighting its confidence in Melbourne despite the challenges posed by the COVID-19 pandemic.
UEM has acquired 21-53 Hoddle St Collingwood, a 5,390 sqm site from Jowett Motor Group and has plans to develop a mixed-use project.
UEM Sunrise managing director and CEO, Anwar Syahrin Abdul Ajib, said the Melbourne commercial and residential sector continues to remain strong despite challenges presented from the global COVID-19 pandemic, with the Victorian government committed to ongoing development and approval of shovel-ready projects.
“We are optimistic when it comes to strategic and well positioned opportunities.
“Following the success of our Aurora Melbourne Central and Conservatory projects, the acquisition of the landmark Collingwood site signals a new chapter in Melbourne for UEM Sunrise, and continues our active presence in the Australian market,” he said.
“There’s no doubt that Collingwood has evolved into a go-to residential and commercial precinct, thanks to its close proximity to the CBD, vibrant café culture and wonderful sense of community. UEM Sunrise looks forward to bringing our development expertise and vision to the area, to deliver quality residences and commercial spaces for the Melbourne’s growing population and help stimulate job creation via the project’s delivery,” Syahrin said.
The purchase comes six months after UEM abandoned its Zaha Hadid-designed Mayfair apartment project in St Kilda Rd due to slow sales. Three years after launching, the developer managed to chalk up 40% in off-the-plan sales.
UEM ultimately sold the former Victoria Police complex to Singaporean SC Capital Partners for $107.08 million, after buying it for $58 million in 2015.
The Collingwood transaction was brokered by Oliver Hay and Peter Bremner from Colliers in conjunction with Raff De Luise from ICR.
Hay said, “this acquisition is a perfect example that well known and sophisticated capital remain active and see positive fundamentals in both the Melbourne residential and commercial property markets.
“Over the past few weeks we have noticed a return in confidence in sales activity, particularly by highly experienced property players who are continuing to make new acquisitions in the Melbourne market.
“The Collingwood suburb profile clearly ticks those core fundamentals, including its close proximity to CBD, education and transport, as well as a thriving working-age population which has attributed the suburb with a newborn status as the emerging office and residential precinct,” Hay said.
UEM Sunrise recently completed its $800 million flagship Australian project, Aurora Melbourne Central, located in the Melbourne CBD. The residential component of the project had strong sales success, with 95% of stock selling out within two weeks of launch and 100% of the project sold prior to completion. Aurora Melbourne Central also achieved a 98% settlement rate for its residences to date.
