Colliers International lists La Trobe Street carpark, as demand for landbank opportunities skyrockets
A commercial carpark in West Melbourne is expected to garner more than $30million after 15 years under the ownership of an Indonesian syndicate.
The prominent 1877sqm site at 496-508 La Trobe Street is the first carpark listing for 2017, coming on the market as interest in carparks and lack of available landbank opportunities in Melbourne continue to rise.
Colliers International’s David Sia, Daniel Wolman, Oliver Hay and Matt Stagg have been appointed to manage the sale via expressions of interest closing March 29 at 3pm.
The site falls under flexible mixed-use zoning, which Mr Sia said would make it a hotly contested asset when combined with its surrounding amenity, nearby parks and easy access to public transport.
“With the entrance of Haileybury’s city campus, the $250million redevelopment of the Queen Victoria Market, and the new addition of West Side Place, which includes the Ritz-Carlton hotel, the site offers prospective buyers the opportunity to acquire a blank canvas for any of their commercial needs,” he said.
On the border of the CBD and West Melbourne, between King and Spencer streets, the carpark’s location is considered to be one of Melbourne’s fastest-growing precincts, with land achieving record rates in the past year.
With Melbourne’s first vertical school, the 10-storey Haileybury City, opening around the corner on King Street and catering to 800 students this year, Mr Sia said the precinct would become “the hub of the future”.
“CBD land rates are skyrocketing and height restrictions in the Melbourne CBD core are making it difficult for developers to stack their projects so landholdings such as this offer an alternative at a much lower land cost,” he said.
“The precinct has recently seen a shift in profile compared to what it was five years ago, and Haileybury City will be a key game-changer in this evolution.
“As parents and students will prefer to be close to the school, this landholding offers the opportunity for education and student accommodation.
“There will then be a need for retail to provide for hundreds of students on a daily basis.”
The listing of 496-508 La Trobe Street comes on the back of a successful 2016 for Colliers International’s Melbourne City Sales team, with the most recent carpack transaction, 380 Flinders Street, collecting $31,288,888 in September.
Mr Wolman said the site was expected to draw interest from active buyers harbouring a view to develop commercial offices, to take advantage of the legal and edication sectors.
“This carpark provides the flexibility and luxury of a multitude of different commercial opportunities given the diversified surroundings,” he said.
“We’re anticipating strong competition from passive investors looking to capitalise on one of the last remaining pieces of land in the heart of the Melbourne CBD.”