This article is from the Australian Property Journal archive
RESIDENTIAL developer Steller Projects has added another key bayside project to its portfolio, acquiring the former Greyhound Hotel in St Kilda for $7.5 million.
The high profile 1 Brighton Road property, on the corner of Blessington Street, covers 911 sqm and sold with a newly approved permit for a seven-level mixed-use project with 37 apartments and two retail spaces.
It follows the $23.4 million purchase of a prized permitted site on Melbourne’s city fringe, at 200 Wells Street in South Melbourne, and of a $25 million commercial block in Elsternwick.
Savills agents Clinton Baxter, Jesse Radisich and Nick Peden negotiated the Greyhound Hotel site sale following an expressions of interest campaign that they said received extensive enquiry from local and Asia-based developers, with extremely strong demand from local developers seeking boutique permit-approved apartment projects within 10 kilometres of the CBD.
The price tag reflected a land rate of $8,200 per sqm and $200,000 per unit. The units comprise one and two-bedroom offerings, 50 car parks included.
“The buyer recognised the unquestionable value of this pocket of the city fringe, an up-and-coming precinct that will be inundated by high-end apartment dwellings in the years to come,” Radisich said.
The iconic Greyhound Hotel, a long-time popular gay bar and drag venue, was controversially demolished in May by then-owner Will van der Linden, before the current permit was obtained.
Initial plans for an eight-storey building with 43 apartments and five retail spaces were rejected by Port Phillip Council earlier this year with a recommendation for a five-level building.
However, the Victorian Civil and Administrative Tribunal allowed for the revised plans and despite widespread community objection the Hotel was knocked down. It had been built in 1853, but its 1936 refurbishment provided a roadblock to it achieving heritage protection.
Meanwhile, Steller’s plans for its 2,400 sqm commercial property in the nearby suburb of Elsternwick, at 233-247 Glen Huntly Road and 14 Ripon Grove, have been revealed with a new notice of application sign showing intentions for a mixed-use development of “up to 13 storeys” including 117 dwellings.
Steller acquired the block of shops earlier this year for $25 million, which had previously held a permit from Glen Eira Council for a project of more than 160 apartments across 10 levels.
The 13-level building would represent a massive departure for the popular retail and lifestyle village, which comprises a number of older-style buildings and very few rising above two levels.
Steller recently acquired the 1,543 sqm 200 Wells Street property with a permit for a 20-level residential project with 174 apartments and retail space, located just 50 metres from the St Kilda Road and Domain rail interchange site.
This year has also seen it pick up 22 Wood Street in Preston for $13.6 million, 6-12 Davey Street in Frankston for $13.5 million and 36 Graham Road in Highett for $18.8 million, as well as $30 million of smaller sites across Melbourne earlier this year.
Steller had more than 800 apartments under construction at the midway point of 2017 with a total pipeline in excess of $3 billion. It also announced a partnership with China’s Great Aim Group for a $150 million development pipeline of residential projects.
Australian Property Journal
