This article is from the Australian Property Journal archive
MIRVAC has added to its Melbourne residential pipeline with the purchase of a 6,500 sqm motel site overlooking Princes Park for a figure believed to be about $40 million.
Early planning for the former Princes Park Motor Inn site at 699 Park Street, between Princes Hill and Brunswick and on the corner of Sydney Road, suggests 200 apartments in a range of configurations that Mirvac says “may change have recent trends towards oversized apartments and amalgamations.
Former owner JWLand had failed to obtain approval for a high-rise building on the site, which has a 100 metre frontage to Princes Park and is to the north of the University of Melbourne and Royal Hospital precinct, and moments away from the busy Sydney Road precinct.
Brunswick is where Mirvac recently bought a one hectare site on Albert Street for a build-to-rent project, in partnership with local developer Milieu, with 500 one, two and three bedroom apartments next to parklands. Rival Stockland embarked on its return to the Melbourne apartments sector with the purchase of a neighbouring 4,000 sqm site for townhouses 140 apartments.
Mirvac, a leader in the fledgling build-to-rent sector, has a $1.4 billion Victorian apartments portfolio. It has just revealed plans for the third and final stage of its Eastern Golf Course redevelopment in the eastern suburb of Doncaster, and the purchase also follows The Eastbourne project in East Melbourne.
“Mirvac is focused on diversifying its portfolio across a range of different markets and is always looking for opportunities to create high-quality apartment offerings,” Mirvac’s head of residential, Stuart Penklis said.
“In many ways the Park Street site echoes the essence of East Melbourne, an outstanding location with access to the best cultural amenity, right on the cusp of Melbourne’s CBD.”
Current plans see the building at various heights stepping back from Park Street to minimise any impact on Princes Park and maximising the vistas for residents.
Penklis said demand from local owner occupiers looking for quality apartments in well serviced locations continues.
“More recently, we are seeing the trend towards right sizers, with families, couples and singles looking for larger apartments that offer a low maintenance, secure lifestyle, close to amenity – something that Park Street will offer in abundance,” Penklis added.
“We have a strong track record of working closely with authorities, as well as the local community, to deliver projects that enhance and celebrate their location, as well as being sensitive to the surrounding properties and amenity.”
Its existing Brunswick property was initially part a string of 12 industrial properties that Mirvac successfully lobbied Planning Minister Richard Wynne on behalf of landowners to have rezoned to mixed use. Mirvac then walked away from an agreement to buy the entire amalgamated block, but after 18 months returned to the table.
