Developer V-Leader has bought seven sites in the East End corner of Melbourne’s CBD in a single deal worth more than $50 million.
All seven properties are freehold, high-profile sites and have street frontages to Russell and Lonsdale streets.
The seven properties at 157-173 Lonsdale Street were owned by local developer Longriver Group and sit on one combined site of 1137sq m with a frontage of more than 100 metres.
“We’re delighted with the acquisition as it allows V-Leader to grow our Melbourne CBD profile into a new segment within the East End,” V-Leader managing director Andy Zhang said.
“We’ve spent a considerable amount of time analysing the various options and given the sites’ proximity to an abundance of amenity, the location instils an opportunity for a variety of uses.”
Zhang said that V-Leader would be considering a potential mixed-use project for the site over the next few months.
Longriver opted to sell the sites in order to manage the rest of their development pipeline.
An expression-of-interest campaign for the sites was managed by Colliers’ Oliver Hay, Leon Ma, Daniel Wolman and Matt Stagg.
Colliers national director Oliver Hay said there was strong demand for land within the Melbourne CBD.
“There’s a large amount of capital from investors and developers wanting to take advantage of the limited supply of land in the CBD,” Hay said.
“Demand has flooded in from local, interstate and offshore groups and created a competitive atmosphere amongst buyers seeking quality land parcels, with considerable opportunity waiting to be unlocked.”
Interest in Melbourne’s East End is one the rise, with the development of SP Setia’s Shangri-La hotel and its neighbouring apartment complex as well as Charter Hall’s Wesley Place office precinct leading the way.
“Being surrounded by many of the CBD’s largest institutional grade developments, there’s an opportunity to capitalise on the evolving East End precinct and explore a range of development outcomes,” Colliers Asia markets and Melbourne city sales director Leon Ma said.
The site at 157-159 Lonsdale Street last sold in an off-market deal for $49.2 million in December 2018, according to Corelogic.
