Developer Pays $5 Million for Hoddle Street Site

A local developer has paid $5.04 million to outbid a number of off-shore groups and take control of a potential development site with Hoddle Street frontage in a deal brokered by Savills Nick Peden and Jesse Radisich.

Mr Peden said the corner 218-228 Hoddle Street property, with two street frontages, was a likely candidate for redevelopment at some stage although the purchaser had not revealed any plans.

“With two street frontages on one of inner Melbourne’s busiest thoroughfares there is exceptional potential for a redevelopment which takes full advantage of the location and there is no doubt that drove the price.

“We were expecting a little over $3.5 million however the strong competition from both local and off-shore interests put its value at another level perhaps reflecting some hope that the site may see a residential rezoning in the not too distant future,” Mr Peden said.

Mr Radisich said the 1,161 square metre property included extensive frontages of 30 metres to Hoddle Street and 38 metres to Stafford Street, with a Commercial 2 zoning allowing for office, some manufacturing uses, bulky goods and other retailing uses.

He said the property, currently home to a 1,209 square metre building which has been primarily used as a showroom, with the main area facing Hoddle Street, was sold with vacant possession.

“The property attracted over 100 enquiries predominantly from purchasers looking to take charge of the property in the short term with a view to getting on with maximizing the property’s potential,” Mr Radisich said.