This article is from the Australian Property Journal archive
MELBOURNE property magnate Mario Salvo has snapped up a mega Fishermans Bend site with approval for more than 1,300 apartments across four towers, in a deal worth more than $40 million.
Salvo Property Group will acquire 9,766sqm at 60-82 Johnston St South Melbourne, in a deal negotiated by Colliers International on behalf of vendor Bill McNee, who bought it in September 2013 for only $10.1 million.
Agents Daniel Wolman and Oliver Hay handled the off-market sale.
Wolman said the transaction demonstrates the confidence in the market, as strong local developers with 100% completion records look to expand their development portfolio.
The site was sold with permits for more than 1,300 apartments across four towers designed by Rothelowman. There will be two high-rise towers (46 and 43 storeys) and two medium-rise towers (27 and 21 storeys).
Wolman said the scale and prominence of the project attracted extensive domestic and offshore interest.
“We were managing interest and offers from several Asian developers, particularly from China, Malaysia and Singapore.
“However, the local developers saw the potential in this premium inner-city location immediately and acted accordingly, which is testament to the strength of the Melbourne market.
“Salvo’s success in Southbank will continue in Fishermans Bend, bringing not only residential apartments to the area, but also supermarkets, retail shops, offices and other amenities. The precinct is set to be Melbourne’s next hot spot, located less than three kilometres from the CBD,” he continued.
Hay said the four-tower complex would be one of the largest apartment projects in the Fishermens Bend precinct.
“This will create numerous construction jobs and opportunities for Victoria but most importantly, will be the catalyst for all other developments within this new and exciting city-fringe opportunity,” he said.
The site benefits from dual street frontages to Johnson Street, as well as convenient rear access via Govenor Road. The state government recently rezoned the land to accommodate residential development as part of the Fishermans Bend Urban Renewal Area.
The Johnson Street sale follows several other recent development site sales across the Melbourne CBD and fringe by Colliers International’s Melbourne City Sales team, which is indicative of the fast-start market already being experienced in 2017.
“The Melbourne CBD and city fringe continues to be a favoured destination for major developers and high-net-worth investors, both locally and offshore,” Hay said.
“In addition to the buoyant high-rise residential apartment market, Colliers International is finding that offshore developers are seeking to incorporate exciting new hotels, office and retail concepts into their developments.”
Australian Property Journal
