Pictured above: 231 Kings Way, South Melbourne
A landmark South Melbourne island site is being offered to the market on behalf of a private family office for the first time in over 27 years.
The international Expressions of Interest campaign for the offering coined New Domain, will be managed by the CBRE Melbourne Metropolitan Sales team of Nathan Mufale, David Minty and JJ Heng.
Located only 1.5km from Melbourne’s CBD and less than 350 metres from the under-construction Anzac Train Station, the offering comprises a mixed-use zoned landholding of 4,707 square metres and features over 150 metres of combined corner street frontage to Bank Street and Kings Way.
The site is being offered to the market with architectural plans for a world-class project designed by renowned architect Fender Katsalidis and featuring views of the Melbourne CBD, Port Phillip Bay, Albert Park Lake and the Royal Botanic Gardens.
“The scale, position and zoning of this gateway site provides the opportunity to create a master-planned community that will be precinct defining whether it sells for build-to-rent (BTR) or mixed-use development outcomes,” Mr Mufale said.
The site is currently home to the high-performing Officeworks South Melbourne on a triple net lease returning approximately $1,573,811 per annum. There are two years remaining on the lease, with no option periods, providing a highly favourable holding income for an incoming developer or land banker.
Officeworks has also provided an Expression of Interest, outlining their willingness to remain on-site or be incorporated into a future development.
“The highly desirable mixed-use zoning and the site’s superior height allowance provides the flexibility for a range of outcomes including a dedicated BTR master plan, build-to-sell, mixed-use, office, hotel uses and more,” Mr Minty said.
Mr Mufale noted that there was pent-up demand from both private and institutional capital looking to secure BTR opportunities in Melbourne to build their pipeline and market share.
“Historically low rental vacancy rates of below 1.0%, strong rental growth projections, increased student visa applications and net overseas migration, as well as a diminished pipeline of inner-city apartment product, are all driving momentum in the BTR sector,” Mr Mufale said.
“With heightened levels of activity and demand from Asian markets such as China, Singapore, Malaysia, Hong Kong and Vietnam, we also expect to field strong interest and participation from international capital competing to secure a high-profile, income-producing landholding this close to the Melbourne CBD.”
The New Domain site benefits from strong public transport amenities, providing direct access to the Melbourne CBD. The central location offers direct freeway connectivity to Melbourne Airport to the north and the Mornington Peninsula to the south.
Mr Minty noted, “This is South Melbourne’s most active and successful development precinct and buyers have the opportunity to join the likes of Gurner, Hines, Mirvac, Altis, Home and Deague Group, all of who have landholdings and projects in the precinct.”
