This article is from the Australian Property Journal archive
A LOCAL family has put their 7,811 sqm landholding to the market after receiving offers of $50 million, as build-to-rent developers circle inner Melbourne development sites.
The 218-246 Macaulay Road and 23 Boundary Road property is in North Melbourne, where US group Hines last month bought more than 3,000 sqm of land for a $230 million build-to-rent facility.
According the Cushman and Wakefield agents appointed to the new listing, there has already been “significant interest” from apartment developers and build-to-rent groups given its prime location and outstanding views.
Lukas Byrns and Marcus Neill describe the offering as “by far the best located site in North Melbourne”.
The site is offered with commercial 1 zoning and a design development overlay that allows for 12 levels. It forms part of the Macaulay renewal precinct, a 90-hectare project that will transition into a mixed use, mid-rise neighbourhood and adjacent to the 50-hectare, state government sponsored Arden transport precinct. The new Arden train station is due for completion in 2025.
Byrns said the Macaulay Road property offers a blank canvass for a developer to create a striking large-scale mixed-use project with suitable uses including residential apartment or build-to-rent, co-living, student accommodation, retirement, office, hotel, retail and or medical.
Preliminary concepts prepared comprise of 443 apartments totalling 28,347 sqm, retail of 1,895 sqm, 270 car parks and a total gross floor area of 39,239 sqm.
The site currently has four office warehouses and signage, and on-grade car parking for 55 cars and provides a passing income of $549,885.
Hines’ $30 million purchase was at 36-58 Macaulay Road where a 220-unit dual tower complex is planned.. Close by, Partner Developments with Local and Macquarie recently bought 350 Macaulay Road with plans for 424 units, while alternative residential housing developer Assemble Communities has collected several sites.
“We are dealing with a wide range of investors and developers, often backed by global institutions, all with a strong desire to place capital into build-to-rent projects in Australia with almost 60% of the total number of BTR projects either under construction or planned in Melbourne,” Neill said.
“There is strong demand for apartments and build to rent product and due to limited supply and population growth is set to resume as borders begin to reopen.
Potential purchasers are becoming priced out of the suburb’s established housing market. Median house prices in North Melbourne have grown 11.5% in the last 12 months.
