This article is from the Australian Property Journal archive
A RARE development opportunity opposite Crown in Melbourne's Southbank precinct, has sold to a Mainland China-based private developer, setting a new benchmark of just under $18,000 per sqm for site without a permit.
Real estate agents Conquest Dowling’s, Luke Conquest and Simon Conquest in conjunction with Knight Frank’s Langton McHarg and Marcus Quinn negotiated the sale of 87-89 Queensbridge St Southbank.
The vendor was owner occupier and tiles retailer, Classic Ceramics, which had occupied the 1,000 sqm warehouse and showroom since 1991. It was offered with a short-term lease until 31 March 2015.
Conquest said the property received strong interest from developers. He added that the majority of interest was from offshore buyers, with a small number of local private developers vying for the prized site.
Conquest said the sale to a private Mainland China-based developer is another example of Asian investor’s strong interest in Melbourne.
It is believed the buyer is proposing to build a hotel and apartment complex on the 1,006 sqm site, taking advantage of the prime position, opposite James Packer’s Crown Casino.
A basic scheme was drawn up to accommodate a 52-level tower on the site.
The latest transaction follows a string of sales to Asian developers. Most recently Singapore’s Aspial Corporation paid $42.3 million for the Australia 108 site at 70 Southbank Boulevard, Southbank.
Other deals include a Mainland Chinese developer buying 158 City Rd Southbank for $22.5 million; a Chinese developer purchased 42-48 Balston St Southbank for $6.9 million; and a Singaporean investor paid $30 million for 38 Freshwater Place.
Property Review
