This article is from the Australian Property Journal archive
DEVELOPERS have been spoilt for choice with three super development sites in Melbourne’s CBD and the city fringe up for grabs.
In the CBD, Fitzroys’ director Rob Harrington and associate Michael Ryan are handling the sale of 54-56 La Trobe St, via an expressions of interest campaign closing September 10.
Harrington said the site will attract residential and student accommodation developers, although he also expects interest from investors looking to land bank.
The 510 sqm site comprises two buildings which are leased short-term to global education group Kaplan on a passing rent of $289,504 p.a.
The site is expected to fetch in excess of $11 million and the offering comes hot on the heels of the agency’s recent sale of the nearby development site 42-50 La Trobe St for $22 million last month.
“This is one of the most active high-rise precincts in the CBD, with Singaporean CEL’s 33M development to the north of the site, Malaysian UEM Sunrise’s 37-level The Conservatory tower under construction to the north east and 35-level Trillium under construction to the east.
“These international developers are attracted to the area by the proximity to all of the CBD’s amenities and commerce,” Harrington said.
At Collingwood, Colliers International’s Peter Bremner and Ted Dwyer in conjunction with Savills’ Clinton Baxter and Julian Heatherich are selling the Foy & Gibson complex at 150 Oxford St, which has the potential for an office or residential redevelopment.
The EOI closes September 2.
The complex comprises approximately 3,336 sqm of office space across two floors, a lower level warehouse and 86 on-site car parks over two levels.
Dwyer said this is a unique opportunity for developers and owner occupiers to explore the redevelopment potential of a building with an extensive heritage façade, in one of Melbourne’s most popular evolving suburbs.
Bremner said the mixed use zoning enables a diverse range of development outcomes including multi-storey residential, office refurbishment or mixed use (STCA).
“Vacant office buildings in the city fringe, and more particularly in Collingwood, are extremely hard to come by – particularly with such character and scale. It’s a fantastic opportunity to value-add, reposition or redevelop.
“Likewise, although the building is currently part of a larger subdivision of the Foy & Gibson complex, there is an opportunity to do as others have and develop it into a multi-level residential apartment development, subject to approvals,” he added.
Baxter said Collingwood has fast become one of Melbourne’s trendiest and most sought after residential and business addresses.
“The evolving suburb has the obvious conveniences being located just 1.5km north -east of Melbourne’s CBD and has been transformed by clever design and blends of old architecture with new,” Baxter said.
Nearby at 150-152 Bridge Rd and 1 Allowah Terrace Richmond, Teska Carson in conjunction with MPC Moss are selling a Commercial 1 zoned 2,040 sqm site, which is believed to be the last half acre commercial/residential/hotel (STCA) development site in Richmond.
The site is tipped to fetch around $8 million.
The agents, Teska Carson’s Larry Takis and Matthew Feld and MPC’s James Moss said the offering is unique.
“This is a real one-off. The sort of rare opportunity that you just don’t see come to the market very often, indeed the vendor has held the property for 40 years.
“At half an acre, with three St frontages, it is arguably the last site of its kind in this part of town. It won’t come up again and savvy developers know that and as such we expect a very competitive Expressions of Interest process with expectations of more than $8 million,” Takis said.
Feld said the elevated site offered numerous options for developers including apartments, a hotel and other types of accommodation.
“It would be perfect for an apartment developer but would also suit a hotel development (STCA) providing international visitors with a CBD fringe destination within easy reach of all of Melbourne’s attractions,” he added.
Feld said architects Elenberg Fraser has prepared a development scheme for the property comprising 97 one, two and three bedroom units for the site.
Moss said the property would be sold subject to five separate tenancies at a current income of $191,000 per annum. He added that the fully let the property had the potential to return closer to $241,000 per annum.
“This is another strong aspect of this property’s credentials, with current rental of $191,000 and the potential for additional income, which provides a developer with an extremely handy income while plans are developed and permits approved,” Moss said.
The EOI closes on September 3.
Australian Property Journal
