The deal represents a landmark transaction for the area – paving the way for a new neighbourhood shopping centre anchored by Woolworths, as well various other commercial and residential developments and expansive open space.
The highly competitive Expressions of Interest campaign attracted 192 enquiries and 11 offers from a mixture of both local private and institutional developers, as well as offshore groups. A locally-based buyer purchased the property with the intention of building the shopping centre, with anticipated trading by around mid-2020.
“Underpinning the strong competitive interest in this property is the confidence in the long-term growth of the Mernda and Melbourne’s northern corridor, given its population growth, public infrastructure investment and successful development precedent,” Mr Dowers said.
Mr Wizel noted that despite the recent negativity surrounding the development site market, the campaign was hotly contested and produced a great depth of buyers.
“The fact that interest rates and residential vacancy are at record lows, but total dwelling supply across the country is at its lowest since 2013, there is strong potential for excellent future market conditions for developers. Given that acquisition to construction completion generally takes two plus years, developers are seeing now as a perfect opportunity to capitalise on this.”
He added: “The mixed-use development product has become very sought after. Developers are attracted to the concept of spreading risk over multiple asset classes with varying completion stages.”
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