Developer Enters Melbourne Hot Spot With Multi-Million Buy-In

A local developer has purchased a potential development site at North Melbourne on Melbourne’s CBD fringe following a competitive expressions of interest campaign.

Savills' Clinton Baxter, who brokered the deal with Julian Heatherich, said the 559 Queensberry Street site was acquired for around $9 million, according to market sources who were unable to confirm the exact confidential amount.

Zoned Mixed Use, the 1182 square metre island site has four street frontages providing outstanding natural light to the modern two level office building, while ample on-site parking is augmented by access to a neighbouring council car park.

Mr Baxter said the property had been extremely popular with a huge number of prospective buyers, with offers received from local developers, Asia-based developers, owner-occupier businesses, and land banking investors.

"North Melbourne is one of Melbourne’s most highly sought after hot spots for residential development, with developers desperately seeking suitable sites throughout the suburb and so it was no surprise that the marketing campaign elicited such a strong response," he said.

"The property was also sold partially leased on a short-term basis thus providing developers with an income stream whilst preparing proposals for a mixed-use project."Mr Heatherich said the undisclosed price was very strong, particularly considering the three level height limit of the property and the area.

He said the location in close proximity to North Melbourne railway station and the Errol Street retail precinct were additional attributes which would enhance the prospects of any future redevelopment of the property.

Mr Heatherich said the property currently returned rental income of nearly $180,000 per annum from three tenants with potential to increase that income to circa $360,000 by leasing vacant space.

The vendor was a Melbourne based investor.