21 May 2015 –Local
Melbourne development heavyweight SALTA has fought off strong interest from
overseas buyers to acquire a highly strategic land parcel in Richmond.
The 4,322sqm site, situated at 53-65
Burnley Street, was marketed exclusively by CBRE’s Victorian Development Sites
team. It attracted interest from a wide range of prospective purchasers, from retailers
through to both local and overseas developers.
“Offshore appetite for large scale projects
opportunities on the city fringe has clearly grown over the past 12 months,”
CBRE Director, Mark Wizel, said.
“In simple terms, the spread of
interest away from the CBD has been a logical next step for many overseas
groups. What they didn't expect to find was such strong competition from local
developers who seem to be more aggressive in seeking to secure suburban
development sites, as opposed to sites in the CBD,” Mr Wizel added.
The site acquired by SALTA site had
been in the same family ownership for 40 years and includes 75 metres of
frontage to Burnley Street. Marketing commenced in late March with initial
price expectations of around $18,000,000.
“We were blown away with the level of interest
from developers,” CBRE’s Julian White said, adding that SALTA was expected to
undertake some form a mixed use development on the site.
SALTA has delivered around 1,000
apartments in what is now referred to as the Victoria Gardens Precinct. They
remain part owners of the Victoria Gardens Shopping Centre, which is anchored
by a major Ikea store and Coles Supermarket.
“All of the prospective purchasers
took confidence from the strength of the Victoria Gardens Precinct, both from a
retail perspective and from the fact that the area has a proven track record
for successful residential development projects,” Mr White said.
The sale boosts the tally of suburban
Melbourne site sales to over $175m in just a few months, with over 65% of these
(by value) having sold to local developers.
CBRE’s Ed Wright said activity in 2015
had clearly been dominated by local developers who were growing in confidence
given the strength of Melbourne’s inner city residential market.
Below is a table of $10M + sites that
have sold in the past two months.
53-65 Burnley Street, Richmond
247-259 Johnston Street, Abbotsford
33-43 Dudley Street, West Melbourne
40 Hall Street, Moonee Ponds
160 Whitehorse Road, Moonee Ponds
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About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2014 revenue). The Company has more than 52,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 370 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website at www.cbre.com.