Record land rate for industrial zoned land in Richmond North
A locally based Chinese developer has snapped up a second Richmond development site in as many weeks following a highly competitive auction.
02 Oct 2018
Fresh from securing the Adairs site for $14.81 million, the developer outbid four competing parties to secure 157-161 Burnley Street for $9.92 million – translating to $7,200 per square metre of land area.
The Burnley site was marketed by CBRE’s Julian White, David Minty and Chao Zhang, in conjunction with CVA’s John Nockles and Ian Angelico
Over 50 bids were registered, highlighting the continued demand for city fringe development sites.
“This sale continues the trend in 2018 for major city fringe sites zoned Industrial 1 or 3, or Commercial 2, to be acquired for commercial office development,” CBRE’s Mr Minty said.
“Close to a third of our team’s development site sales in 2018 have been to buyers planning office projects, which is a 100% increase from 2017 and 2016.”
The 1,381sqm Burnley Street site offers three street frontages and is presently leased to wine wholesaler Get Wines Direct for $280,000 per annum. However, buyer interest centred on the site’s potential for a major office development, with the neighbouring Peregrine Project’s site recently rezoned to allow for a nine-level office project.
“While the Richmond North precinct is positioned between the more prominent markets of Cremorne and Collingwood, the area is attracting heightened demand and we have witnessed substantial capital growth,” Mr Minty said, noting that the area benefitted from its excellent access to amenity, including trams and the Victoria Gardens Shopping Centre.
CBRE’s Mr Zhang said the Burnley Street sale also highlighted that Asian developers were increasingly diversifying their development books.
“Over the past 12 months, our Asian Services Desk has witnessed a significant increase in demand for commercial development sites and we expect this trend to continue,” Mr Zhang said.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), 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 2017 revenue). The company has more than 80,000 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.
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About CBRE Group, Inc.
CBRE Group, Inc. (NYSE: CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2021 revenue). The company has more than 105,000 employees (excluding Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of 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 https://www.cbre.com.