This article is from the Australian Property Journal archive
BOUTIQUE developer Piccolo has paid more than $20 million to secure the Australia Post site and two neighbouring properties encompassing 2,000 sqm in the inner Melbourne suburb of Fitzroy.
It had to compete with more than 200 other interested parties and 30 rival bids for the Australia Post distribution centre at 371-385 Gore Street.
Piccolo added to the 1,192 sqm site the 195 and 197 Argyle Street properties, creating a triple-fronted parcel on which it plans to build a new luxury apartment offering for the suburb with an estimated value of $120 million.
Piccolo director Michael Piccolo said its success with the nearby seven-storey, 34-apartment project Fitzroy House had given it the confidence to move aggressively to secure the rare opportunity against stiff local and interstate competition.
“We are very pleased to secure this trifecta of properties – combined they create an incredible opportunity in the heart of Fitzroy, on a stunning character-filled, tree-lined street just steps from Smith Street, named coolest street in the world by Timeout,” he said.
“We truly believe in the strength of the Fitzroy market and we have come to deeply understand what local buyers are looking for in this area.”
Fitzroy House, at 71-75 Argyle Street, has sold out and is poised for completion later this year.
JLL’s Josh Rutman, who managed the sale with colleagues Tim Carr and Mingxuan Li said the competition for the site was in part due to a lack of A-grade sites available in the local market.
“This transaction is yet another strong representation of the developer confidence for well-located landholdings in Melbourne, in both established and emerging locations that are underwritten by demand of future dwellers and workers,” Rutman said.
Neighbouring Collingwood is home to a fast-growing commercial market, while prominent developer Tim Gurner has received funding for a $120 million hotel, serviced apartment, residential and retail development that will be his latest project in the area.
On the edge Fitzroy and Collingwood, developer Fortis has put a 5,500 sqm Clifton Hill parcel to the market with hopes nearing $50 million, after obtaining a planning permit for an office and retail project anchored by a Woolworths supermarket. Its parent company Pallas Group paid $32 million acquiring the Smith Street land, on the corner of Alexandra Parade, cobbled together with sites that had been previously bought by the Victorian government for the East West Link tunnel project.
Across Smith Street is the former Gasworks site the state government is currently remediating, and which be used for 1,100 apartments, a 650-student high school, public open space and sports facilities.
