This article is from the Australian Property Journal archive
EDDIE Kutner's Central Equity has snapped up two development sites in the Melbourne CBD legal precinct.
CBRE Melbourne city sales and Gross Waddell sold the properties located at 556-566 Lonsdale St and 13-25 Healeys Lane for over $20 million.
The properties have been held by a private family for over 25 years. The existing buildings have a combined building area of circa 3,221 sqm and are leased to multiple retail and office tenants mainly associated with the legal industry.
The properties have a combined site area of approximately 2,173 sqm and are situated between King and William streets.
Central Equity will most likely develop residential apartments on the site.
CBRE’s director Mark Wizel said this transaction speaks volumes for the confidence that both local and offshore buyers have in the Melbourne CBD.
Recent CBRE research shows approximately $820 million worth of properties have changed hands, of which buyers from China accounted for 52% ($433 million), followed by Malaysia with 25% ($209.91 million), Singapore with 20% ($175 million) and Australian investors accounted for 3% ($22 million).
And Charter Keck Cramer’s director Sam Nathan said the Melbourne apartment is one of the most immature high-rise markets in the world.
Last month Nathan told the 2013 API Vic Annual State Conference that apartments represented only 3.3% of total housing stock in Melbourne compared to 9.5% in Sydney.
Compared to a global cities with a similar population size to Melbourne (4.25 million people), the city of Toronto (population of 2.79 million (5.5 million in the Greater Toronto Area)), apartments represent approx 38% of total housing stock.
The Vancouver metropolitan area (2.31 million people), apartments accounted for approx 40% of total housing.
Nathan said Melbourne’s apartment still has a long way to go.
Gross Waddell’s Andrew Waddell said both agencies handled significant levels of interest from local and overseas buyers for this offering.
“We were pleased with the response to the campaign which attracted eight bidders and a short list comprising two local groups and two groups from China,” Waddell said.
Wizel said the sale is part of an emerging trend within the CBD, where properties with development potential have been sold without a planning permit.
Recently Knight Frank’s Paul Henley, Marcus Quinn, Langton McHarg sold 38 Freshwater Place to a Singaporean buyer for $30 million. The site was sold without a permit but can adopt a scheme for a 70-level plus residential tower comprising 640 apartments.
The CBRE city sales team is also marketing a site at 158 City Rd Southbank, which comes with a permit for a 43-level building comprising 449 apartments, designed by architects Elenberg Fraser.
Property Review
