A MEATY OFFERING IN SOUTHBANK
Posted on 04 April 2018
A BACKPACKERS hostel and nightclub site in the prized Melbourne city edge precinct of Southbank is set to make way for a $200 million, 38-level residential tower.
Australian Meat Group director and property investor Joe Catalfamo has put the 1,621 sqm site at 344 City Road site to the market, with a permit for a 307-apartment development of 21,703 sqm that offers CBD, Port Phillip Bay and Yarra River views, and ground floor retail.
CBRE's Mark Wizel, Julian White and Nathan Mufale are marketing the property with Frank Vinci and Joseph Carbone of Vinci Carbone. It is expecting to bring circa $25 million.
The site currently comprises the Urban Central Backpackers Hostel and XE54 nightclub, providing short-term income.
The offering follows recent high-profile sales of Southbank sites with notable development potential. BMW sold its 6,191 corner site at 58 Southbank Boulevard to Malaysian backed developer Beulah International for $101,008,888.
Architecture firm Fender Katsalidis has drawn up plans for the site that includes dual building s joined by a sky bridge and comprise more than 800 apartments, 600 hotel rooms and 10,000 sqm of retail space.
Also during the summer, Grocon acquired the 1,262 sqm site at 256-266 City Road for $35 million in an off-market deal. IT sold with a permit for 410 apartments over 62 levels, but Grocon is expected to use it as a build-to-rent play aimed at worked professionals and executives.
Meanwhile, the 1,123 sqm 296-306 City Road site is believed to be changing hands for around $18 million, with a proposed development scheme of 172 apartments and commercial space.
The 344 City Road property is close to the Crown casino complex, which Crown Resorts plans to build Australia's tallest building next to. he $1.7 billion One Queensbridge tower has received planning approval, and is set to rise 323 metres with 388 hotel rooms and 708 apartments.
Wizel said Melbourne needed to rapidly increase housing supply to meet strong population growth projections, while the even stronger projections for Southbank are going to see competition for scarce development opportunities also drive significant increases in land values.
"Southbank has witnessed perhaps the most robust growth of any city fringe market in recent years and that scenario looks set to continue to play out while alternatives like Fishermans Bend face continued delays," he said.
Vinci said despite the strong inner-city apartment supply cycle, there had been few signs yet of significant settlement or oversupply issues.
"The rental market continues to be supported by population gains, with demand for apartments generally matching supply (especially one and two-bedroom stock) and vacancy rates remaining low," he said.
CBRE research suggests Southbank's residential population of 18,700 will grow 7.6% over the next five years to 2022, nearly four times the rate of expected for Greater Melbourne - and to exceed 50,000 by 2036.
UDIA research estimates total building approvals and dwelling commencements between 2018-19 and 2020-21 will need to average 75,000 a year to supply an adequate volume of net additional dwellings, wel above the 66,440 approvals in the 2014 - 2017 period.
Wizel said recent Southbank transactions had set strong benchmarks across land and unit rates, while sub 4% yields demonstrated developers' willingness to accept sharp yields on the back of the significant development potential.
He cited OSK Property's selling of 451 apartments at its $2.8 billion Melbourne Square project since marketing began eight years ago.
Catafalmo last year sold the Marine Hotel in Melbourne's blue-chip suburb of Brighton for $15.8 million to a Chinese investor, at a sharp 3.3% yield, just one year after paying $13 million to the high-profile Zagame family for the asset.
Australian Property Journal
Australian Meat Group director and property investor Joe Catalfamo has put the 1,621 sqm site at 344 City Road site to the market, with a permit for a 307-apartment development of 21,703 sqm that offers CBD, Port Phillip Bay and Yarra River views, and ground floor retail.
CBRE's Mark Wizel, Julian White and Nathan Mufale are marketing the property with Frank Vinci and Joseph Carbone of Vinci Carbone. It is expecting to bring circa $25 million.
The site currently comprises the Urban Central Backpackers Hostel and XE54 nightclub, providing short-term income.
The offering follows recent high-profile sales of Southbank sites with notable development potential. BMW sold its 6,191 corner site at 58 Southbank Boulevard to Malaysian backed developer Beulah International for $101,008,888.
Architecture firm Fender Katsalidis has drawn up plans for the site that includes dual building s joined by a sky bridge and comprise more than 800 apartments, 600 hotel rooms and 10,000 sqm of retail space.
Also during the summer, Grocon acquired the 1,262 sqm site at 256-266 City Road for $35 million in an off-market deal. IT sold with a permit for 410 apartments over 62 levels, but Grocon is expected to use it as a build-to-rent play aimed at worked professionals and executives.
Meanwhile, the 1,123 sqm 296-306 City Road site is believed to be changing hands for around $18 million, with a proposed development scheme of 172 apartments and commercial space.
The 344 City Road property is close to the Crown casino complex, which Crown Resorts plans to build Australia's tallest building next to. he $1.7 billion One Queensbridge tower has received planning approval, and is set to rise 323 metres with 388 hotel rooms and 708 apartments.
Wizel said Melbourne needed to rapidly increase housing supply to meet strong population growth projections, while the even stronger projections for Southbank are going to see competition for scarce development opportunities also drive significant increases in land values.
"Southbank has witnessed perhaps the most robust growth of any city fringe market in recent years and that scenario looks set to continue to play out while alternatives like Fishermans Bend face continued delays," he said.
Vinci said despite the strong inner-city apartment supply cycle, there had been few signs yet of significant settlement or oversupply issues.
"The rental market continues to be supported by population gains, with demand for apartments generally matching supply (especially one and two-bedroom stock) and vacancy rates remaining low," he said.
CBRE research suggests Southbank's residential population of 18,700 will grow 7.6% over the next five years to 2022, nearly four times the rate of expected for Greater Melbourne - and to exceed 50,000 by 2036.
UDIA research estimates total building approvals and dwelling commencements between 2018-19 and 2020-21 will need to average 75,000 a year to supply an adequate volume of net additional dwellings, wel above the 66,440 approvals in the 2014 - 2017 period.
Wizel said recent Southbank transactions had set strong benchmarks across land and unit rates, while sub 4% yields demonstrated developers' willingness to accept sharp yields on the back of the significant development potential.
He cited OSK Property's selling of 451 apartments at its $2.8 billion Melbourne Square project since marketing began eight years ago.
Catafalmo last year sold the Marine Hotel in Melbourne's blue-chip suburb of Brighton for $15.8 million to a Chinese investor, at a sharp 3.3% yield, just one year after paying $13 million to the high-profile Zagame family for the asset.
Australian Property Journal