A series of unsolicited offers has prompted Singapore-listed construction company Lian Beng Group to sell its St Kilda Road development site – with the sale expected to fetch circa $40 million.
Lian Beng Group planned to launch its first residential project at the 596 St Kilda Road site by Q3 2017 after acquiring permit approval for a 170-unit apartment block, designed by Australian architectural firm Bates Smart.
CBRE’s Mark Wizel and Josh Rutman in conjunction with Colliers International’s Bryson Cameron and Trent Hobart have been appointed to market the 1,804 sqm site.
Mr Rutman said the opportunity to acquire the development site, also known as Canopy, is ideally placed to capitalise on the market’s current demand for luxury apartments, given its permit approval and readiness for pre-sales.
“Developers are actively seeking projects where they can appeal to high-end owner occupiers and downsizers. St Kilda Road has become the home of some of Melbourne’s most high profile residential buildings, including the Melbournian, Parque and Royal Domain,” Mr Rutman said.
“Some of the highest dollar per square metre rates have been achieved in the precinct surrounding 596 St Kilda Road.”
Mr Wizel added: “With a number of active groups already delivering projects in the precinct, a development of this palatable size with highly saleable and well-designed apartment product will see strong local and offshore developer interest.”
”The offering follows what has been a monumental week in the Melbourne development site market with a recent announcement from Malaysian Development Giant SP SETIA that they have successfully acquired 111A Beckett Street for $61,000,00, with a 20day settlement. The acquisition by Setia is regarded by many as an incredible shot of confidence for the Melbourne high density apartment development market,” Mr Wizel said.
The site, which currently comprises a low-rise, 1940s apartment block, offers dual street frontage onto both St Kilda Road and Queens Lane and overlooks Albert Park Lake.
Lian Beng Group has been notably active in the Melbourne market over the past two years, purchasing an office building at 257 Collins Street in 2015 and choosing to sell the property in April this year for $23 million. The group also purchased a freehold 18-storey building at 50 Franklin Street in the Melbourne CBD in November 2016 for $51.5 million.
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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 (based on 2016 revenue). The company has more than 75,000 employees (excluding affiliates), and serves real estate investors and occupiers through more than 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
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 (based on 2016 revenue). The company has more than 75,000 employees (excluding affiliates), and serves real estate investors and occupiers through more than 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
