Melbourne, July 4 2013-Almost 25ha of prime land within the exclusive Yarraville Gardens estate has hit the market, offering the rare opportunity to secure residential property just six kilometres from the Melbourne CBD.
The 24.3ha site is located in Melbourne’s premier western suburb of Yarraville. It is being offered with development approval for 1,500 dwellings, comprising a mix of townhouses and apartments, however, there is significant scope to enhance density of the development scheme subject to the relevant planning approvals.
CBRE’s Mark Wizel is marketing the property on behalf of Melbourne-based family business DeGroup. The international Expressions of Interest campaign is expected to attract offers in excess of $100 million. Mr Wizel said the sale presented a once in a generation opportunity to deliver a genuine landmark high density project in a location that, given its proximity to the Melbourne CBD, was unlikely to be repeated in the foreseeable future.
“The rarity of 60 acres of residential zoned land six kilometres from the Melbourne CBD simply cannot be understated,” Mr Wizel said.
“There is little doubt that while off-shore Asian developers remain the most active buying group for large inner city sites with residential development potential, Yarraville Gardens is also expected to generate significant interest from the domestic private and institutional development market.”
A large number of Asian developers have already made a beeline for the Melbourne CBD and immediate fringe, however, Mr Wizel said there was now more evidence of larger groups - especially from Malaysia and Singapore - looking to acquire townhouse and apartment projects.
Mr Wizel said the site would also deliver a housing boost to the Victorian capital to accommodate the inner city housing demands of Melbourne’s growing population.
“Offshore developers and, more recently, local institutional developers are seeing the consistent population growth of Melbourne and adjusting their strategies accordingly,” Mr Wizel said.
“In addition, relevant councils and the state government have been very proactive in addressing the city’s positive population growth.”
The Yarraville Gardens sales campaign follows the sale of a series of significant development sites in Melbourne, including the recent transactions of the Amcor site ($120m), the former Age site in the CBD ($75m) and Nigel Satterley’s acquisition of a major parcel of land in Point Cook ($100m).
The site’s owner, Colin DeLutis, said his family felt the market was in good shape to offer the property publicly following continued approaches over the past five years from a variety of interested groups.
“We’ve been approached many times over the past five years, however, we think the time is now right to undertake a formal sale campaign,” Mr Delutis said.
“Whilst several attractive approaches have been tabled in recent years, we just didn’t feel the time was right, nor was the site ready due to the need for a zoning change and an initial, smaller scale development approval, which no doubt the successful buyer will look to improve upon.”
The Yarraville Gardens project will also include a 10,000sqm neighbourhood shopping centre, a new 800sqm Yarraville library and more than 400 onsite carparks.
While it was early reported that both Coles and Woolworths were interested in anchoring the shopping centre, Mr Delutis said a major supermarket had not been decided yet. However, he confirmed that his company would develop a shopping centre on the business zoned land with a view to retaining ownership of the centre.
Yarraville Gardens is a proposed mixed use residential and business development located to the south of Francis Street and the west of McIvor Reserve in West Yarraville. The site is surrounded by more than 28 hectares of parklands and is located close to the Yarraville train station and the famous Yarraville retail village.
It is understood that the potential density of the 60 acre site could become home to in excess of 7,000 people in a project that could span a decade, with potential realisations for the state of Victoria exceeding $2 billion, subject to the relevant planning approvals.
For Australian/international news or global stories, follow us on Twitter.
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 2012 revenue). The Company has approximately 37,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 300 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 atwww.cbre.com.au.