A Chinese developer has acquired a site in Coburg for more than $13 million to make way for an exciting mixed-use development at 200-216 Sydney Road.
The site, previously used for Benton’s Plumbing Supplies, is 7473 square metre with three street frontages, including extensive 60.36m frontage to Sydney Road.
The coming development for the site already has a permit in place for 124 apartments, five townhouses, a supermarket, three retail spaces and two offices.
“Our Chinese clients are now looking to venture further from the CBD and they are seeking mixed-use, derisked projects,” Colliers International’s Trent Hobart said.
“As one of our offshore underbidders said, ‘We, like the Chinese dragon, must spread our wings further to source the success we desire’.
"He went on to say that with no more supply in the CBD, they have to look further for their developments in the middle-ring suburbs, to the townhouse markets in the outer suburbs and to the subdivision markets.”
Local development manager Whiteman Property & Accounting managed the rezone and permit process for the vendor. International architecture firm Taylors designed the proposed development, with a net saleable area of 11,843 square metres over five levels, comprising residential, retail and commercial spaces.
“This Coburg site had been used as an industrial and showroom facility for many years but has recently benefitted from a rezoning from Industrial 3 to Activity Centre 1,” Colliers International’s Hamish Burgess said.
“The whole precinct has been rezoned, from City Road to Brunswick, attracting an influx of lifestyle-focused business.”
Mr Burgess said the substantial landholding, versatility of the site and premium location close to City Road were the key factors in the sale. Key players in the retail and aged-care sectors were among the interested parties.
“The sale highlights the strength of the market for mixed-use development sites, where the developer has the opportunity to create inbuilt amenity to enhance the lifestyle of future residents,” Mr Burgess said.
Coburg is seeing significant gentrification taking place, Mr Burgess said, with an increasing number of first home buyers looking in the area.
“More and more young professionals are pushing further north, having been priced out of areas such as Fitzroy, Collingwood and Brunswick,” he said.
“Coburg is the perfect inner-north location, with the growing population transforming what was once an industrial-focused suburb into a cultured residential and culinary hot spot.”