South Wharf site sells to new offshore entrant to Melbourne market
A new offshore entrant to the Melbourne property market has snapped up a substantial development site situated within the South Wharf city fringe precinct for around $60million.
Colliers International’s Trent Hobart and Bryson Cameron have facilitated the sale of a prized 8,847sqm site at 89 Lorimer Street, with plans and a planning permit for a landmark residential project, on behalf of Little Projects’ Paul Little.
The sale represents a capital value of approximately $6,782/sqm on land and around $63,829 per apartment. The site has plans and a permit for a 940-apartment development.
“In the midst of government increases to costs for foreign investment, we have been able to sell the site to a large, private offshore new entrant which demonstrates the international confidence in Melbourne as a long term investment proposition,” Mr Hobart said.
“This development site is of an international scale and has recently been granted with ministerial planning permit approval for a high end dual tower development of 940 apartments, known as South Wharf Towers.
“This sales campaign was highly anticipated given the scale of the development, ability to stage the project, no-risk planning framework and prime residential location.
“It’s an ideal city fringe residential location just 1km from the CBD, with view lines that span across vast parkland, the Yarra River, Port Phillip Bay and the Melbourne CBD together with the inspiring Elenberg Fraser design that will forever change our city skyline. Melbourne’s next iconic development has arrived.
“This is a world class development by any measure. Having been designed by the now world renowned Elenberg Fraser architects, the completed dual cylindrical towers will represent the Gateway to Melbourne."
Mr Cameron said the view lines on offer from South Wharf Towers would be nothing short of spectacular in all directions, from the 47 and 49 level towers.
“The exceptional strength in demand from both on and offshore developers for high profile projects such as South Wharf Towers continues in Melbourne, primarily due to our ongoing population growth, strong residential market fundamentals, offshore investment and growing downsizing owner occupier market,” Mr Cameron said.
“We have seen existing players and new entrants aggressively lay claim to premium development opportunities, and this was certainly the case with South Wharf Towers.
“Following the government-led planning changes in the City of Melbourne in 2015, there has been a distinct lack of residential sites for sale with only three transactions in the CBD grid in 2015. This site will address that underlying demand for a premium residential development site on the doorstep of the CBD with the bonus here being the de-risked planning and infrastructure contribution framework and proven residential location, given Mirvac’s success in the area.”