A Chinese developer has swooped on an unpermitted Fishermans Bend land bank, two weeks in advance of the close of an Expressions of Interest campaign.
The 2,609sqm site is located at 280 Normanby Road, South Melbourne. There is 11 years remaining on the existing, long term lease agreement.
CBRE Victorian Development Sites Director Mark Wizel, who brokered the $14m sale with colleagues Julian White, Ed Wright and Lewis Tong, said sites in the Fishermans Bend precinct were attracting unparalleled interest from Chinese capital.
“The demand is real. Well located sites in Fishermans Bend, particularly in the Normanby Road precinct, are receiving huge offshore interest,” Mr Wizel said.
“This is really exciting for the future development of the precinct. These offshore developers have the capacity to deliver these sizeable projects and are not disadvantaged by local banking guidelines relating to offshore pre-sales,” Mr Wizel added.
The buyer of 280 Normanby Road was represented by prominent Melbourne property lawyer, Eu Ming Lim, a partner from Thomson Geer.
Mr Wizel said CBRE had mandates from a number of major offshore groups seeking to acquire sites in the Fishermans Bend precinct.
“There is currently a unique set of market conditions impacting the development site sector,” Mr Wizel said.
“Uncertainties in the Chinese economy as a result of recent stock market volatility have resulted in a number of local Chinese developers looking to double down and invest more money into Melbourne real estate.”
In relation to Fishermans Bend, Mr Wizel said the urban renewal occurring in that precinct coupled with the Victorian Government’s support for high rise development in the area was underpinning buyer interest.
“Sites with an existing income stream are highly valued,” Mr Wizel added.
“A real window of opportunity is open for Fishermans Bend land owners to capitalise on this unique set of market conditions.”