This article is from the Australian Property Journal archive
A HIGH-profile St Kilda corner property is for sale, offering exciting redevelopment opportunities.
The site is located at the intersection of St Kilda Road and Kings Way, occupying one of the largest triple-fronted landholdings on the boulevard of just under 4,700sqm.
Kiran Pillai and Tom Ryan of CBRE are working with Josh Rutman and Tim Carr from JLL to sell the 424-426 St Kilda Road location. They’ve been appointed to run an expression of interest campaign by Advise Transact’s Lewis Tong and Mark Wizel who have acted on behalf of Hong Kong group Mars Family Holdings. The campaign ends on Thursday, December 1 at 2pm.
Existing improvements within the precinct include two six-level office buildings joined by a large glass atrium, providing a total net lettable area of 12,074sqm and 175 basement car parks. The Commercial 1 Zone on the site allows for development of up to 18 levels with CBRE senior director Kiran Pillai highlighting the precinct’s potential.
“Given the substantial existing improvements and development potential, we expect the sale campaign to generate significant local and offshore buyer interest. There is potential to explore opportunities for a major build-to-rent or build-to-sell redevelopment, capitalising on the site’s inner-city location and proximity to the new Anzac railway station. An incoming owner could also look to refurbish the existing office buildings or explore options for a hotel or healthcare redevelopment.”
St Kilda Road has witnessed significant growth in recent years and continues to be a strong area to invest and develop. The $12.5billion Metro Tunnel Project will be completed in 3 years and will open up further opportunities while providing a stronger link to the centre of Melbourne.
With office and apartment supply significantly lacking, the sales campaign for this property could serve as an opportunity to reverse a trend and start to respond to these particular needs on St Kilda Road.
“The northern precinct of St Kilda Road has largely been developed and there are limited opportunities to secure high quality sites,” JLL Executive Director Josh Rutman said.
“424 – 426 St Kilda Road is no doubt one of the best remaining sites and offers the ability to either reposition the asset and hold for the future or alternatively develop in the short to medium term and take advantage of the predicted shortage of commercial and or residential accommodation.”
