This article is from the Australian Property Journal archive
CANBERRA’S largest developer, Geocon has picked up a largely unrestricted development site in the heart of the national capital’s CBD from Defence Housing Australia for $24 million.
Located at 70 Allara St, the 7,640 sqm parcel was formerly the Werriwa Defence Facility and had been put to the market late last year with hopes of about $30 million. Nine bidders in the first round shortlisted down to three in the final round.
Both the National Land status and the 99 year Crown lease purpose clause that expires in 2116 offer unrestricted residential uses, as well as potential for office, retail and hotel use that includes a 25 metre height control limit with 96 metres of frontage to London Cct.
The property is situated within an area home to multiple large Commonwealth and local government departments, including the Department of Home Affairs, Murray Darling Basin Authority Department of Foreign Affairs and Trade and ACT Government, and is also near the block close to the southern end of City Walk and the entrance to Canberra’s major retail offering, the Canberra Centre, Canberra Casino, Civic Pool and Lake Burley Griffin.
Andrew Stewart of Savills, who managed the sale with Stuart Cox, said 70 Allara St has the ability to push the development envelope.
“No gross floor area restrictions will ensure Geocon can create a landmark design and maximise the final development yield.”
The agents said site is underpinned by a strong urban renewal program already underway in the ACT and a shift to creating dense urban precincts in Canberra’s CBD.
Projects within a 10 minute walk of the site include stage one of the Capital Metro Light Rail, the planned Civic to Woden Light Rail stage two route, ACT Law Courts PPP and new ACT government headquarters.
Cox said there has been a significant increase in interest for residential sites close to transport, retail and education facilities from a mix of high net worth individuals, well-established local developers, interstate developers and student accommodation groups “looking to capitalise on the economy recovering sooner than expected”.
The Suburban Land Agency last month listed the 1.363 hectare former Macarthur House site on Northbourne Ave in Lyneham for sale, which could potentially be used for a mixed use development with over 400 dwellings. JLL and Colliers have the listing.
