$80m Residential Tower for Southbank Site

$20,000sq m land sale sets new Southbank benchmark

A Hong Kong based developer has paid $8.8 million for a Southbank development site with plans for a circa $80 million Fender Katsalidis designed, 38 level residential tower, according to Savills agents.

Savills Director, Nick Peden, who brokered the 18 Moray Street deal with State Director Clinton Baxter, and Associate Director, Jesse Radisich, said, at $20,000 a square metre of land and $70,000 per apartment, the sale had set a strong new benchmark for Southbank land.

“The transaction clearly demonstrates the ongoing appeal of the Melbourne market to Asia-based developers wishing to undertake projects to meet the needs of our rapidly growing population, and the price reflected that,’’ Mr Peden said.

He said the high profile, 446 square metre corner site, had predictably attracted a Melbourne cup field of suitors.

“A city fringe site with a permit for a 124 apartment development designed by one of Melbourne’s best known architectural firms, was always going to generate a lot of interest.

“The fact that the property offered buyers the ability to immediately commence the approved project was the icing on the cake. All in all, this was a masterful delivery of a project to the market and both the purchaser and vendors could not be happier,” Mr Peden said.

He said the sale was finalised promptly on unconditional cash terms and subject to two short term leases returning $120,000 per annum net.

Mr Baxter said the proposed development would take full advantage of what was an incomparable Southbank location, only a short walk to the Crown Casino complex and close to the Melbourne CBD.

“The fact that this location is Melbourne’s most successful high-rise residential precinct is very well demonstrated by the multitude of successful projects, many of which benefit from views towards Port Phillip Bay and Melbourne’s CBD, as well as close proximity to Melbourne’s world renowned sporting and entertainment precincts, parks and gardens,” Mr Baxter said.

Mr Radisich said permit approved sites within Melbourne and Southbank had never been more valuable, especially given recent restrictions on development height and density within the precinct.

He said the site was one of the last major permit-approved development opportunities within the prized Crown Casino precinct.