Almost 25ha of prime land within the exclusive Yarraville Gardens estate has entered the market with an expected price tag of $100 million.
Located just six kilometres from the Melbourne CBD, the 24.3ha site offers a rare opportunity to secure residential property in such close proximity to the city heart.
Yarraville Gardens is being offered with development approval for 1,500 dwellings comprising a mix of townhouses and apartments, however there is also opportunity to enhance the development scheme with relevant planning approvals.
The Yarraville Gardens project will also include a 10,000sqm neighbourhood shopping centre, a new 800sqm library and more than 400 onsite car parks.
The project’s sales campaign follows the sale of a series of significant development sites in Melbourne, including the recent transactions of the Amcor site ($120m), the former Age site in the CBD ($75m) and Nigel Satterley’s acquisition of a major land parcel in Point Cook ($100m).
CBRE’s Mark Wizel is marketing the property internationally for Melbourne-based family business DeGroup, and said the sale of a high-density project, with such close proximity to the city, is unlikely to be repeated.
“The rarity of 60 acres of residential zoned land six kilometres from the Melbourne CBD simply cannot be understated,” Mr Wizel said.
“There is little doubt that while off-shore Asian developers remain the most active buying group for large inner city sites with residential development potential, Yarraville Gardens is also expected to generate significant interest from the domestic private and institutional development market.”
Large numbers of Asian developers have already moved swiftly on Melbourne’s CBD and the city fringe, with Wizel saying larger groups - especially from Malaysia and Singapore – are now after similarly sited townhouse and apartment projects.
“Offshore developers and local institutional developers are seeing the consistent population growth of Melbourne and adjusting their strategies accordingly,” Mr Wizel said.
According to Mr Wizel, Yarraville Gardens will also deliver a housing boost to the Victorian capital by responding to the inner city housing demands of Melbourne’s growing population.
“In addition, relevant councils and the state government have been very proactive in addressing the city’s positive population growth,” he said.
Site owner, Colin DeLutis, said his family felt the market was in good shape to offer the property publicly following continued approaches over the past five years from a variety of interested groups.
“We’ve been approached many times over the past five years, however, we think the time is now right to undertake a formal sale campaign,” Mr DeLutis said.
“Whilst several attractive approaches have been tabled in recent years, we just didn’t feel the time was right, nor was the site ready due to the need for a zoning change and an initial, smaller scale development approval, which no doubt the successful buyer will look to improve upon.”
While early reports mentioned both Coles and Woolworths as anchor tenants, Mr Delutis said a major supermarket had not been decided yet. However, he confirmed that his company would develop a shopping centre on the business-zoned land with a view to retaining ownership of the asset.
The proposed mixed-use residential and business development is located to the south of Francis Street and the west of McIvor Reserve in West Yarraville.
The site is surrounded by more than 28 hectares of parklands and is located close to the Yarraville train station and the famous Yarraville retail village.
It is understood that the potential density of the 60-acre site could become home to in excess of 7,000 people in a project that could span a decade, with potential realisations for the state of Victoria exceeding $2 billion, subject to the relevant planning approvals.