Colliers International sells 9766sqm in South Melbourne for more than $40million
A reputable Melbourne developer has secured almost a full hectare site with a permit for four residential towers in the Fishermans Bend precinct.
Salvo Property Group will acquire 9,766sqm at 60-82 Johnson Street, South Melbourne, in a deal negotiated by Colliers International on behalf of vendor Bill McNee.
Agents Daniel Wolman and Oliver Hay facilitated the deal in an off-market transaction for a price believed to be more than $40million.
“The transaction demonstrates the confidence in the market, as strong local developers with 100 per cent completion records look to expand their development portfolio, despite all the negative buzz you might hear in the media,” Mr Wolman said.
The property has plans and permits for more than 1,300 apartments in four towers designed by Rothelowman. There will be two high-rise towers (46 and 43 storeys) offering views back towards the Melbourne CBD, Southbank, Crown Casino and Port Phillip Bay, complemented by two medium-rise towers (27 and 21 storeys).
“60-82 Johnson Street in South Melbourne will be one of the largest mixed-used complexes within Fishermans Bend,” Mr Wolman said.
“Salvo’s success in Southbank will continue in Fishermans Bend, bringing not only residential apartments to the area, but also supermarkets, retail shops, offices and other amenities. The precinct is set to be Melbourne’s next hot spot, located less than three kilometres from the CBD.”
Mr Wolman said the scale and prominence of the project attracted extensive domestic and offshore interest.
“We were managing interest and offers from several Asian developers, particularly from China, Malaysia and Singapore,” he said.
“However, the local developers saw the potential in this premium inner-city location immediately and acted accordingly, which is testament to the strength of the Melbourne market.
“This project is situated within one of Australia’s most dynamic urban renewal development precincts and as such, it was an opportunity for someone to create a flagship project. Some groups saw it as defining the precinct but we see it as defining Melbourne’s future.”
Mr Hay said the four-tower complex would be one of the largest apartment projects in the Fishermens Bend precinct.
“This will create numerous construction jobs and opportunities for Victoria but most importantly, will be the catalyst for all other developments within this new and exciting city-fringe opportunity,” he said.
The site benefits from dual street frontages to Johnson Street, as well as convenient rear access via Govenor Road. The state government recently rezoned the land to accommodate residential development as part of the Fishermans Bend Urban Renewal Area.
Fishermans Bend has been identified by the Victorian government as a key precinct within its Plan Melbourne metropolitan planning strategy. The objective is to accommodate Melbourne’s growing population, which is forecast to increase from 4.5million today to a projected eight million by 2050. Scarce and underutilised land has been rezoned to enable high-quality development.
South Melbourne is an established and affluent inner-city suburb between the Melbourne CBD and Port Phillip Bay, offering residents a range of employment and lifestyle opportunities within 20 minutes of their homes.
The Johnson Street sale follows several other recent development site sales across the Melbourne CBD and fringe by Colliers International’s Melbourne City Sales team, which is indicative of the fast-start market already being experienced in 2017.
“The Melbourne CBD and city fringe continues to be a favoured destination for major developers and high-net-worth investors, both locally and offshore,” Mr Hay said.
“In addition to the buoyant high-rise residential apartment market, Colliers International is finding that offshore developers are seeking to incorporate exciting new hotels, office and retail concepts into their developments.”