The former school site, which has a permit approval for 96 townhouses, last changed hands five years ago for $14 million.
Mr White said the deal represented the largest permit approved townhouse site sale in suburban Melbourne for 2019 and was a clear sign of market confidence returning to the development site sector.
“We received 11 expressions of interest, which represented approximately $200 million of combined capital,” Mr White said.
“What stood out was the diversity of interest, with institutions, local privates and a number of Asian backed developers among the bidders. The fact that there was this level of interest for a permit approved site is a clear sign that developers are actively seeking properties where they can begin pre-selling product this year.”
Mr White noted that this represented a 12-24 month acceleration to the feedback being received from buyers at the start of the year.
The transaction closely follows the sale for Caltex of 25 development sites in NSW, Victoria and Queensland.
CBRE negotiated the sale of the national Caltex portfolio in conjunction with Stonebridge.
“The depth of bidding for this portfolio, with approximately 160 offers, really took us by surprise,” Mr White said.
“Developers were highly comfortable buying these sites and receiving a modest return from a license fee while remediation occurs. This reflects the growing view by many developers that we are heading into a period of chronic undersupply, so they are aggressively looking to secure a pipeline of residential sites to meet anticipated demand.”
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