Fishermans Bend development site sells for more than $40m
A development with permits for four residential towers in excess of new height restrictions in Melbourne’s Fishermans Bend urban renewal precinct has sold to a local developer.
The sale of 60-82 Johnston Street, South Melbourne, brokered by Colliers International, was an off-market transaction, with a price tag of more than $40 million.
Agent Daniel Wolman said that the result defied negative talk about Melbourne’s residential development market.
“The transaction demonstrates the confidence in the market, as strong local developers with 100 per cent completion records look to expand their development portfolio, despite all the negative buzz you might hear in the media,” Mr Wolman said.
It is understood that the 9766-square-metre site was sold on behalf of Melbourne developer Bill McNee, owner of Vicland, and has been listed with Colliers since July last year.
The Johnston Street sale is the latest in a partnership between Mr McNee and Colliers, the firm having sold his South Yarra offices for $6.8 million.
The dual-street-frontage site has plans and permits for more than 1300 apartments in four towers designed by architecture firm Rothelowman.
The planned development includes two high-rise towers of 46 and 43 storeys, offering views back towards the Melbourne CBD and Port Phillip Bay, and two medium-rise towers, at 27 and 21 storeys, making the development one of the largest mixed-use complexes in Fishermans Bend, according to Mr Wolman.
Despite being rezoned without height controls by then planning minister Mathew Guy in 2012, development approval in the Fishermans Bend precinct has faced a level of uncertainty in recent years as arguments over height restrictions were resolved.
In November 2016 the state government advised developers with current applications for permits in the precinct to revise their application to adhere to a 40-storey maximum height limit.
Mr Wolman and colleague Oliver Hay said the scale and prominence of the project – which is expected to set a precedent for development in the area – attracted extensive domestic and offshore interest.
“We were managing interest and offers from several Asian developers, particularly from China, Malaysia and Singapore,” Mr Wolman said.
“However, the local developers saw the potential in this premium inner-city location immediately and acted accordingly, which is testament to the strength of the Melbourne market”
“This will create numerous construction jobs and opportunities for Victoria but most importantly, will be the catalyst for all other developments within this new and exciting city-fringe opportunity,” Mr Hay said.
It is one of a string of recent South Melbourne area transactions, as the precinct undergoes a new wave of development – driven by the urban renewal project underway at Fishermans Bend.
Last year Colliers sold a two-tower development site in nearby South Wharf for about $60 million.
