Mixed-use site in prime Chapel Street location sells for $65m
A large development parcel on Chapel Street, South Yarra, has sold for $65 million, reinforcing renewed capital confidence on one of Melbourne’s most closely watched retail strips.
The 3306-square-metre site at 402-416 Chapel Street was acquired by veteran developer Bill McNee in a deal reflecting a land rate of $19,661 per square metre.
McNee’s portfolio includes several prominent mixed-use developments across Melbourne, including 11 Wilson Street, St Germain and 33 Cremorne, and the acquisition positions him to shape a substantial portion of one of the city’s highest-profile retail addresses.
The holding has 75 metres of frontage to Chapel Street and 220 metres of combined street exposure, giving it a near-island presence on the strip. Parcels of this magnitude rarely come to market on Chapel Street, where ownership is typically fragmented across smaller titles, limiting large-scale redevelopment opportunities.
Brokered by Cushman & Wakefield, the site sits within an Activity Centre Zone and carries an existing permit for a substantial mixed-use scheme, positioning it squarely within Melbourne’s ongoing push toward higher-density infill development.
“Sites of this scale and prominence on Chapel Street are exceptionally scarce,” says Daniel Wolman of Cushman & Wakefield.
“This is one of the most significant development parcels to transact in inner Melbourne in recent years, and it provides Bill McNee with the platform to deliver another benchmark mixed-use project.”
Chapel Street, which runs through Windsor, Prahran and South Yarra, has been undergoing a gradual repositioning following several challenging retail cycles. A recent multimillion-dollar retail deal at 467 and 469 Chapel Street signalled improving investor sentiment, while the planned redevelopment of the Jam Factory is expected to introduce renewed retail, hospitality and commercial activation.
Wolman says the sale of 402-416 Chapel Street underscores continued investor appetite for scale in prime inner-city locations.
“It marks the next chapter in South Yarra’s transformation and reinforces that, despite cyclical headwinds, capital continues to back quality, scale and proven development capability,” he says.
