This article is from the Australian Property Journal archive
A CHINESE developer has snared an unpermitted Fishermans Bend precinct site for $14 million.
Located at 280 Normanby Rd South Melbourne, the site 2,609 sqm is considered a land bank as there is 11 years remaining on the existing, long term lease agreement.
CBRE Victorian development sites director Mark Wizel, Julian White, Ed Wright and Lewis Tong handled the sale, two weeks prior to the close of an Expressions of Interest campaign.
Wizel said sites in the Fishermans Bend precinct were attracting unparalleled interest from Chinese capital.
“The demand is real. Well located sites in Fishermans Bend, particularly in the Normanby Rd precinct, are receiving huge offshore interest.
“This is really exciting for the future development of the precinct. These offshore developers have the capacity to deliver these sizeable projects and are not disadvantaged by local banking guidelines relating to offshore pre-sales,” Wizel added.
The buyer of 280 Normanby Rd was represented by prominent Melbourne property lawyer, Eu Ming Lim, a partner from Thomson Geer.
Wizel said the agency is receiving more enquiries for sites in the Fishermans Bend precinct from major offshore groups.
“Uncertainties in the Chinese economy as a result of recent stock market volatility have resulted in a number of local Chinese developers looking to double down and invest more money into Melbourne real estate,” he continued.
Wizel said sites with an existing income stream are highly valued.
“A real window of opportunity is open for Fishermans Bend land owners to capitalise on this unique set of market conditions,” he concluded.
Other deals so far this year include:
– 245-251 Normanby Rd South Melbourne for $14 million,
– 235-241 Normanby Rd South Melbourne for $18 million,
– 240 Normany Rd South Melbourne for $10 million, and
– 15-87 Gladstone St South Melbourne for $37 million.
CBRE is currently marketing 18 Moray St and 51-57 Haig St, both in Southbank.
Australian Property Journal
