The University of Melbourne has offloaded a Southbank apartment development site for an enormous price speculated to have just nudged $50 million – more than $20 million over the property's guide price when it hit the market two months ago.
The 4176-square-metre block abutting a small park at a triangle junction connecting Kings Way and Sturt Street was offered with an architectural planning scheme – not a permit – for a high-density residential complex with two towers of about 20-levels containing a total of about 349 flats.
![A local developer is paying a speculated $40 million for a 41-hectare site in Clyde North.](http://web.archive.org./web/20170730033133im_/https://www.fairfaxstatic.com.au/content/dam/images/g/v/u/z/1/w/image.related.articleLeadwide.620x349.gwn2hz.png/1496898067328.jpg)
However a more dense proposal with taller towers and "at least twice the amount of flats" – as one agent put it – is a possibility.
Colliers International's Trent Hobart and Bryce Cameron, with Charter Keck Cramer, represented the university, which plans to use sale proceeds to build a $105.5 million music school.
![It is reported Crescent Wealth sold an eight-level, 7608-square-metre Southbank office for $37 million.](http://web.archive.org./web/20170730033133im_/https://www.fairfaxstatic.com.au/content/dam/images/g/i/1/h/o/4/image.related.articleLeadwide.620x349.gwn2hz.png/1496898067328.jpg)
The speculated sale price of 268 Sturt Street, Southbank would value the land at $12,200 per square metre – above average given the block offers view security.
When this site was listed for sale two month ago, the area's reported average land value was $7500 per square metre.
In 2014, the University sold a 5136 square metre holding in nearby South Melbourne for $10.8 million to the state government for it to be redeveloped as a primary school. Prior to the university buying 129-161 Ferrars Street in 1977, it was owned by various owners including James Hardie, Rocke Tompsitt & Co and Elders.
Earlier this week it was reported Crescent Wealth sold an eight-level, 7608-square-metre Southbank office for $37 million – a rise on the $30.75 million it paid in July, 2015. A lease affecting this building expires in 2019.
![Melbourne investor Joseph Gersh, along with Stewart Baron, has sold a large North Melbourne holding for $8.3 million.](http://web.archive.org./web/20170730033133im_/https://www.fairfaxstatic.com.au/content/dam/images/g/w/n/3/6/p/image.related.articleLeadNarrow.300x0.gwn2hz.png/1496898067328.jpg)
Controversial Wantirna South site sells for $11m+
Another main-road development site in Melbourne's east has sold for an eight-figure sum.
Currently an all-you-can-eat restaurant the Wantirna South site has made headlines in recent years while the vendor obtained a redevelopment permit allowing for an eight-level apartment building with 94 flats.
A further 28 dwellings – townhouses – as well as a restaurant, office and gym, is approved for the rectangular block close to the Rowville train station. Across the road, the Westfield Knox Shopping Centre is set for a $450 million renovation and extension.
Hocking Stuart's Maurice DiMarzio and Vincent Yap sold 500 Burwood Highway, Wantirna South – which is about 26 kilometres from the CBD – for more than $11 million ahead of a scheduled auction.
Last month it was reported Chinese townhouse developers are paying about $25 million for a 2.6-hectare Burwood Highway site in Vermont South, about 20 kilometres east of the CBD.
In February, another offshore developer paid a speculated $20 million for a 1.7-hectare site at the north-west corner of Ferntree Gully and Jells roads, Wheelers Hill, 23 kilometres south east of the CBD. Like the Vermont South site, this plot is also expected to make way for a townhouse-based village.
Private investors sell North Melbourne site
Melbourne investors Joseph Gersh and Stewart Baron have sold a large North Melbourne holding to an owner-occupier for $8.3 million. The parcel at 56-92 Langford Street, on the north-east corner of Gracie Street – a tree-lined industrial road – is near the elevated Citilink tollway which divides the suburb from Kensington.
The proposed Arden train station – part of the Melbourne Metro Tunnel Project which started construction this year – is a few hundred metres south of the Langford Street site, which was marketed by Colliers International.
Tullamarine ambo-factory re-leased
The Tullamarine factory which fitted Victoria's ambulances until the company that provided that service – the private equity backed Byron Group - went into administration last October, has been re-leased. The 6800 square metre site with a 2744 square metre office warehouse and wraparound driveway, was marketed by Rutherfords Real Estate's Drew Williams.
Thomas family continuing sell-down
The Thomas family, founders of the famous jewellery chain, have listed another retail asset, this time in regional Shepparton. The 500-square-metre investment at 300 Wyndham Street is being offered with a new three-year lease to the retailer, which pays annual rent of $90,000 and some outgoings. It is configured with a ground floor 350-square-metre retail space and upstairs office. Gagliardi Scott Real Estate's Rocky Gagliardi is asking $1.25 million for the property which is for private sale.
In the CBD, the family are expected to bank more than $30 million from the sale of a prime retail investment in Bourke Street's Royal Arcade.
In April, the Thomas family recently sold Geelong's five-level National Mutual building to local businessman Bill Votsaris for $3.76 million, who plans to reconfigure the historic space as a boutique hotel.
41ha Clyde North parcel selling
A local developer who resides in Melbourne's outer south east is paying a speculated $40 million for a 41-hectare site in the same direction but further away from the city, in Clyde North.
The parcel at 75 McCormacks Road is where metropolitan Melbourne – in the form of new housing estates – is replacing farmland en-route to Tooradin.
Major residential and commercial developments in the immediate area have been proposed by builders including Sydney-based ASX-listed giant, Stockland, local builder MAB, and former footballer turned builder, Fraser Brown.
Mirvac is proposing a master-planned housing estate and town-centre on land next door to 75 McCormacks Road, which was marketed by Biggin & Scott's Andrew Egan and Frank Nagle.
The land, about 48 kilometres from the CBD, has the potential to be subdivided into nearly 700 suburban house blocks.
The deal comes three years since Fraser Brown paid a farmer $14 million for his 41-hectare Clyde North plot at 1350 Pound Road, which was not immediately zoned for residential development. In 2015, the ex-Carlton footballer paid a speculated $40 million for the 48-hectare ex-Amstel Golf Course in the much more established outer south-eastern suburb of Cranbourne, about 43 kilometres from the CBD.
Email: marcpallisco@gmail.com
Twitter: @marcpallisco