This article is from the Australian Property Journal archive
MALAYSIA’S largest listed property developer, SP Setia has snapped up a Prahran development site at auction for $10 million.
Colliers International’s Trent Hobart, Hamish Burgess and Ben Baines handled the campaign for the 850 sqm site at 103-105 High St Prahran, which saw strong competition between local and offshore developers and competitive bidding in front of an auction crowd of more than 150 people.
The property was sold on a land rate of $11,765 per sqm and a unit rate of $212,766 per sqm.
This represents SP Setia’s fourth land purchase in Melbourne, with the developer seeking to construct a high-end residential project on the site with a gross development value of $38 million.
The site was sold with a permit for a nine-level mixed-use development with a total net saleable area of 4,321 sqm featuring seven levels of apartments, ground floor retail, a floor of office space and 63 car spaces.
Baines said the site had become the first within the City of Stonnington outside of the Forest Hill precinct to sell for more than $10,000 per sqm when it changed hands 16 months ago for $6.2 million.
“Opportunities are becoming fewer and fewer in this south after area, particularly opportunities that comes with a permit of this calibre,” Burgess said. “Established offshore entrants in the Melbourne market are now looking to recycle funds from their initial projects, creating another wave of aggressive bidding for well located, blue chip, permitted development sites.”
Meanwhile at Southbank, Chinese developer Aohua Sheng Le Property has bought 107-117 Queensbridge St, a 1,856 sqm site, for $32.3 million.
Aohua Sheng Le Property already owns the neighbouring 87-105 Queensbridge St property and is planning to consolidate the sites to develop a 880 apartments project. The Southbank site was marketed by CBRE, which put it on the market earlier this year.
Australian Property Journal
