This article is from the Australian Property Journal archive
BOUTIQUE developer Keystone Property Group has increases its Footscray development pipeline to 600 apartments after acquiring a strategic site.
Keystone director Ray Evans said the acquisition of the 2,736 sqm site at 94-104 Buckley St for approximately $5 million will add another 100 plus units to its current pipeline, with an end value of $60 million.
“We will work closely with council to come up with an iconic design which will enable us to provide a significant number of apartments that we can sell for under $500,000. The Buckley development next door accommodated 102 apartments on a smaller site,” Evans said.
Evans added that he expects the proposed development would sell out prior to completion with a start date, subject to council approval, in late 2017.
“It’s a very attractive price category for investors. Where else in Melbourne, five kilometres from the CBD, can you buy a brand new, 75 sqm, two bedroom apartment for $500k? The answer is nowhere.
“First time investors as well as occupiers love this type of product. Investors are especially happy with the solid capital growth and 4 to 5% rental returns. We sold the previous two projects at 90-92 Buckley St and 27 Victoria St before completion and I’ve no doubt we well do that again,” Evans said.
Savills Julian Heatherich, Nick Peden and James Lockwood negotiated the sale.
Heatherich said the sale of the Department of Treasury and Finance property had attracted very strong interest from developers wanting to play a part in Footscray’s most significant growth phase.
“We expected an enormous response from the market for an exceptional property in an exceptional location and that is what transpired,” he added.
Peden said the strong support from both the Victorian government and Maribyrnong City Council had played, and would continue to play, a key role in the growth and planned development of Footscray.
“Footscray was recognised by governments as the future western arm of the Melbourne CBD, extending both the employment and residential capacity of the city’s heart and we are now seeing that potential come to fruition.
“With the population set to double over the next ten years, government contributions in facilitating development and providing a high level of certainty for investors and developers, is essential to accommodating that growth,” Peden concluded.
Australian Property Journal
