A South Melbourne supersite with over 200 metres’ of prominent street frontage has sold for more than $41 million – representing an 86% price gain since it last transacted in 2013.
CBRE’s Victorian Development Sites team of Mark Wizel, Julian White, Lewis Tong and Bianca Butterworth negotiated the sale of the high profile portfolio, comprising 10 titles totaling 4,641sqm.
Melbourne-based property investment and development firm GLG secured the property, which is located opposite the renowned South Melbourne Market, within 24 hours of the conclusion of the public tender process.
Last sold in late 2013 for $22 million, the site offers 203 metres’ street frontage to York, Cecil, Market and Northumberland streets.
Mr Wizel said the property’s scale and prominent position attracted unprecedented interest, with more than 160 enquiries received.
“We haven’t had a campaign quite like it in a long time. The interest from such a wide range of buyers resulted in a huge number of conforming tenders with a local developer outmuscling a range of institutional and overseas buyers to secure the exciting land parcel,” Mr Wizel said.
GLG plans to undertake a commercial and retail development on the site, which has a 23.5 metre height limit.
Fellow selling agent Julian White said the site was ideally situated to capitalise on South Melbourne’s strengthening residential market.
“What was really noteworthy during this campaign, was the strong demand we received from the local developer community,” Mr White said.
“We knew that large groups would have interest in the site as it had been mooted for some time about the site’s suitability for a large scale office development, but to get such significant buyer interest from local private developers was unexpected.”
Mr White went on to say the sale highlighted strengthening demand for well-located development sites.
“Key measures such as residential auction clearance rates regularly around 80% this year indicate the strength and confidence of Melbourne’s core markets. This has a positive flow on effect to other industry sectors, particularly development.”
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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 approximately 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.
