Melbourne, 7 October 2014 – A prime, inner city landholding at Parkville in Melbourne has been sold for $12,050,000 following a keenly contested marketing campaign.
The site - currently home to the Parade Inn motel - was offered under instructions from Michael Long of Septimus Jones & Lee.
The CBRE City Sales team of Ed Wright, Mark Wizel and Josh Rutman teamed with Scott Callow of CBRE Hotels to market the 3,221sqm landholding, which has significant development potential.
“The public marketing campaign drew very strong interest with over 185 genuine enquiries from a range of local and offshore groups,” Mr Wright said.
“We received 12 Expressions of Interest, with the eventual purchaser out bidding several off shore parties to secure the property.”
It was the first time the 535-541 Royal Parade site has been listed for sale since the early 1980s.
Both hotel investors and residential developers expressed interest in the campaign, with a view to either refurbishing the existing building or redeveloping the site.
“The sale of Royal Parade, which is subject to a height limit of 14 metres and significant setback restrictions, is further evidence of the pent up demand for properties in sought after inner city locations,” Mr Wright said.
Mr Wizel added that CBRE had conducted an international marketing campaign, which had attracted strong buyer interest from Malaysia, Singapore and mainland China.
“While some industry commentators have suggested the potential for development site prices to plateau in recent campaigns, the result on 535-541 Royal Parade further highlights that premium prices can be achieved by agents who know how to strategically market properties to the local and off shore market,” Mr Wizel said.
The Royal Parade property offers circa 25 metres of frontage to Royal Parade and over 45 metres of frontage to Parkville’s prestigious The Avenue. It is situated over three individual titles in in a highly desirable location in the University precinct, close to Melbourne University and RMIT and in close proximity to the Melbourne CBD.
An attraction for purchasers was the current functional improvements, providing the opportunity to trade the motel business while exploring future value add, conversion or re-development opportunities.
The existing motel includes conference facilities, a dining hall/restaurant, spa room, guest laundry and offices as well as extensive onsite car parking facilities.
The transaction follows the recent sale of city fringe development sites at 15-27 Wreckyn Street, North Melbourne for $12,300,000 on behalf of the Lort Smith Animal Hospital and 73-77 Wellington Street Collingwood for $8,800,000 for the Smith Family.
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