With an unbeatable combination of location and development potential, a beachfront site in St Kilda has been listed for sale with a price tag likely to exceed the hundred-million mark.
Sydney-based investor Greg Shand’s Barana Group has listed the 5,791sq m site at 14-16 The Esplanade. The asset hosts an eight-storey, 211-room Novotel Hotel.
Shand’s Barana Group acquired the hotel in 2012 for around $55 million. Shand later secured a permit for 25,581sq m of residential space over a three-tower, seven-storey apartment project. An initial proposal for around 300 apartments was refused by the City of Port Phillip in 2014.
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CBRE’s Mark Wizel said both developers and financiers would be attracted to the very low construction risk presented by what is a relatively low rise project.
“The location is one of the best available in inner Melbourne offering uninterrupted bay and city views within easy reach of the CBD on nearly one and a half acres of very desirable real estate.
“On top of that it offers a planning permit for more than 25,000 square metres of luxury apartment living designed by prominent Melbourne architect Andrew Norbury,” he said.
Location has not exclusively informed the predicted sales; market conditions will also play a major part as stock supply has been much shorter than buyer demand in the St Kilda area.
“Large development sites in this part of Melbourne just don’t exist let alone come up for sale,” Wizel said.
Developments nearby both on Beaconsfield Parade and Marine Parade saw new off-the-plan apartment projects sell out, reflecting strong demand in the area.
The property will be sold by an expressions of interest campaign closing 28 March 2017.