Melbourne development company Pace Development Group has outbid major local and offshore developers for a large-scale infill landholding in Sunshine North.
The developer paid $34 million for the 20-hectare former basalt quarry site located on Duke Street. The site makes up stages four and five of the River Valley Estate project, a 500 lot residential subdivision in Sunshine North.
The CBRE Victorian Development Sites team of Julian White, Mark Wizel, Nathan Mufale and Lewis Tong negotiated the sale via an international Expressions of Interest campaign on behalf of YourLand Developments.
White said capital had been shifting into suburban Melbourne development sites throughout 2017.
“Due to heightened restrictions in the Melbourne CBD and city fringe markets, buyers are capitalising on local councils’ willingness to encourage suburban developments,” he said.
“This offering was also perfectly timed to capitalise on strong demand from developers for medium density townhouse developments in established suburban areas – particularly those with vast retail amenity and employment drivers as well as proximity to educational institutions and key infrastructure.”
The Sunshine North site is situated just nine kilometres from the Melbourne CBD, with views of the city and frontage onto Maribrynong River. It is also close to multiple public transport options, retail centres and expansive parks and recreation facilities.
“River Valley is one of the largest infill developments in Melbourne and is targeted to become a complete community with townhouses, retail, housing allotments and a wide range of other uses,” YourLand Developments Fund Manager Mark Erskine said.
Pace Development Group Managing Director Shane Wilkinson said the acquisition presented an opportunity for the company to continue developing activated, community focused housing that would add genuine value and amenity to the suburb.
CBRE’s Mr White said the Sunshine North sale had been finalised amid booming residential market conditions in Melbourne’s inner west.
“The area’s revitalisation and forecast population growth of 9% over the next 15 years have been key market drivers,” Mr White said.