SPENCER ST APARTMENTS

An offshore builder has out muscled locals for an inner-city showroom that was expected to be sold to an investor who would have retained its use as retail.  The two level former Valiant Hire building at 617-643 Spencer Street sits on a 1620 square metre block between Abbotsford and Hawke streets in West Melbourne. Despite being attached to other showrooms to one side, the section that was sold (with 61 metres frontage to Spencer Street) will be refitted and extended to create a medium-density apartment building that will rise only a few levels - in line with local height restrictions.

The $4.1 million sale to a Beijing-based developer continues a trend of Asian investors buying into Melbourne's CBD recently, according to Vinci Carbone director Joseph Carbone, who sold the asset with Frank Vinci.

Late last year a Malaysian developer paid $15.1 million for a 1029 square metre development site at 398-406 Elizabeth Street. Another Malaysian investor paid $11 million for the former Fletcher Jones showroom at 1 Queen Street, a site also expected to become a residential building. Last month a Malaysian investor paid $6 million for a two-storey car park in Flinders Lane.

China-based developer Hengyi is refitting and extending a long-dormant office at 199 William Street with a 500 plus unit apartment complex.