Citinova has picked up one of the last major industrial development sites in Northcote in Melbourne’s inner north-east for $20 million.
The 1.2ha property at 24 Leinster Grove was acquired after a highly contested off-market expressions-of-interest campaign.
Colliers International’s Joe Kairouz and Robert Papaleo, who negotiated the sale, said the campaign resulted in 11 serious offers from bidders pursuing a range of investment and development strategies.
Kairouz said that a scarcity of infill property of scale with inherent flexibility for ongoing or alternative use had meant competition for the site was always going to be high.
The sale is the latest in a string of significant development sites sold off-market in the Northcote precinct by Colliers this year—combining to about $100 million in transactions.
The Northcote site is made up of two separate 5800sq m blocks north and south of Gadd Street. The creek and parkland, including the contested Northcote Golf Course, are nearby.
Records show the vendors include Ensign Services and HT Propco 1, whose shareholders include the Spotless Group.
North Melbourne-based Citinova, chaired by Ross Pelligra, specialises in residential, hotel, commercial and industrial property assets.
The developer has extensive experience with infill sites, and said the acquisition would further bolster its strong Victorian pipeline of projects across multiple asset classes.
Futher west in Braybrook, Citinova is readying plans for its last site acquisition, a 4000sq m site at 13 Kent Street it purchased in late 2020. That eventual development will hold views towards the adjoining Sunshine Bowls Club and Pritchard reserve.
In a statement, Citinova director Nathan Minicozzi said the Northcote site would offer the developer a unique opportunity to continue “supporting the gentrification” of Northcote.
“We are looking forward to working with council and all local stakeholders to design and develop an incredible built-form environment, which complements the surrounding neighbourhood,” Minicozzi said.
While Minicozzi didn’t disclose whether future development for the site would be residential or commercial, the suburb has been gaining popularity for homeowners in recent years—now regarded as Melbourne’s most liveable suburb, based on a recent PwC report.
The suburb is underpinned by the high quality of parks and open spaces, public transport, food and beverage offerings, location and access to the CBD and other suburbs.
Nearby, busy developer Time and Place is moving ahead with plans for a $500 million mixed-use project at Northcote Plaza. Time and Place acquired the site from developer Les Smith’s LAS Group for $60 million in 2021.
Meanwhile, Metro Property Group is delivering a 74 townhouses masterplan at Beavers Road, overlooking the Merri Creek. The project, which incorporates concrete that cuts embodied carbon by as much as half, received $54 million in funding from the federal government’s green finance fund.
Young Group is also delivering a $23 million boutique apartment project between 243 and 249 St Georges Road comprising 27 apartments and MAB Corporation is advanced on its development at 20 Walker Street comprising a mix of apartments and split-level homes fronting Merri Creek.
