Melbourne-based developer Jonathan Hallinan has acquired a new site on Clarke Street in Melbourne's Southbank with the intention of returning to the apartment development market.
The acquisition comes after Hallinan called time on the Melbourne apartment market earlier this year.
The founder of developer BPM cited the removal of off-the-plan stamp duty concessions for investors and the imposition of higher taxes for offshore buyers as reasons for his 18-month hiatus.
Hallinan says his decision to return to Melbourne's apartment market comes thanks to significant rental demand for apartments in BPM's "Shadow Play" development.
BPM's newest acquisition, located at 54 Clarke Street, is wedged between two apartment towers, Habitat at 58 Clarke Street, and The Bank, at 283 City Road.
It was purchased by BPM for $8.9 million from local owners who had it listed for the past year.
Subject to planning approval, BPM have plans to develop a 24-storey, 100-unit project.
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BPM delivers 46-storey "Shadow Play" project
BPM has completed the first stage of its $300 million apartment tower Shadow Play ahead of schedule.
The accelerated construction of the 46-level tower, spearheaded by builder Icon, has enabled $125 million worth of apartments to be settled, allowing BPM to pay back lenders Westpac and CBA.
“This project not only represents the first major tower development for BPM but is also the largest scale project completed by our construction partner, Icon,” Hallinan said.
Hallinan says the flow-on effect to rental demand has been unprecedented, with 2,500 rental enquiries received in the first two weeks.
The first stage, comprising 267 apartments, has been finalised with the next stage involving the completion of the penthouse apartments on levels 42-45 along with top-floor retail space.
“We could not be prouder of the finished result at Shadow Play, which has delivered on our extraordinary vision to create places of beauty and indulgence for a highly aspirational market.”
A hotel, occupying the building's first nine floors, is due to open in the third quarter of the year.