Samuel Property has secured a prominent development site in central Melbourne for $21 million after convincing 20 individual unit owners to sell in one line.
The off-market transaction, for a cluster of 1950s-era flats at 8 Louise Street, was conducted over a period of seven months.
The developer worked in partnership with Stonebridge Property Group’s Julian White and Chao Zhang, who represented the 20 owners.
In this TUD+ Briefing, Samuel Property managing director Illan Samuel discusses the fundamentals that drew the developer to the site, how the deal was pieced together, the interactions with the variety of stakeholders and its plans for the site moving forward.
“The biggest challenges we saw in structuring this deal was from a legal point-of-view,” Samuel said.
“Each vendor has their own lawyer, accountant, and team behind them.
“When dealing with more than 20 lawyers, you can agree on the headline items, price, term, deposit ... but the further you go into detail with technical items the more difficult it becomes to keep all parties involved bound together and committed to the deal.”
The acquisition now provides Samuel with a 1200sq m site just off St Kilda Road.
The building has the potential to be redeveloped into a luxury residential development, subject to approval.
Samuel said the developer was now looking to build approximately 115-apartments, ranging from one to three bedrooms, across a 17-storey project.