Colliers International starts search for government development partner
Colliers International’s Robert Papaleo, Hamish Burgess and Joe Kairouz have been appointed by Development Victoria to facilitate the first stage (Expressions of Interest) of a three-staged transaction process. At the completion of the transaction process, Development Victoria will be entering into a Development Agreement with the successful developer or consortia, to deliver a mixed use development on the substantial Foster Street site.
“Central Dandenong is one of Melbourne’s most established and significant activity centres,” Mr Papaleo said. “It offers all of the economic fundamentals, location attributes and policy drivers to continue being a suburban CBD destination for commercial, retail and mixed use investment.
“The site, which is located within the Revitalising Central Dandenong Declared Project Area, is being offered through this EOI as a result of consolidation of multiple land holdings into single ownership by Development Victoria.”
Agents expect the unique scale of the site, and the opportunity it offers to play a significant role in the growth of the regional economy, would attract wide-ranging interest.
“Victoria’s stable and reliable growth is a significant driver of Australia’s economic expansion,” Mr Kairouz said. “Over the past decade, Melbourne has become an internationally significant destination for service and knowledge-based industries including education and tourism.”
“Melbourne is consistently one of the fastest growing, most dynamic and most liveable cities across the world’s advanced economies with its population to rise from 5 million to 8.5 million residents by 2050.
“Within Melbourne, the South-East region is the largest economy, with Dandenong representing the CBD of the region and the gateway to its growth corridors. Presently, South-East Melbourne has limited supply of undeveloped appropriately zoned land due to historically strong demand factors with increased development activity over the previous 15 – 20 years.”
The Revitalising Central Dandenong project (RCD) commenced in 2006 with a $290 million investment by the Victorian Government that has facilitated the delivery of enhanced connectivity, public realm and amenity as well as seed projects such as the Australian Taxation Office, State Government Hub and the Council Civic Centre.
“The RCD project aims to establish Central Dandenong as a vibrant and thriving economic hub in the south-east region by leveraging private sector investment in residential, retail and commercial developments and urban amenity,” Mr Papaleo said. “This significant opportunity is an extension of this and we expect it will attract interest from national and international developers and consortia.”
Mr Kairouz said in Australia’s current challenging lending market, the opportunity to acquire a development site with a staged settlement on the land provided added financial incentive.
“The significant size of the site, its planning certainty and the benefits associated with partnering with the Victorian Government – make this EOI a rare opportunity,” he said.