Malaysian developer SP Setia has purchase one of the last remaining permit-approved sites in the Melbourne CBD’s northern end for $61 million.
The 1,741sqm property located at 111,125 A’Beckett Street – known as Paradigm - has been earmarked for a 210 metre residential tower, accommodating 632 apartments and ground floor retail. The property currently houses a Harley-Davidson dealership.
CBRE’s Josh Rutman, Mark Wizel and Lewis Tong managed the sale process on behalf of Singaporean developer, Tong Eng Group.
Tong Eng Group Director Emilia Teo commented on the transaction: "We are extremely satisfied with the sale of 111-125 A’Beckett Street, which delivers an attractive return on investment for the group. It reflects the strong appetite for well-designed residential assets in the Melbourne CBD.”
The purchase will mark SP Setia’s sixth development in its Melbourne portfolio, with other projects including Fulton Lane at 151-165 Franklin Street, Parque at 555 St Kilda Road and the recently-approved 250-metre-tall twin tower development at 308 Exhibition Street, which will include over 300 luxury apartments, office space and a five-star Shangri-La Hotel.
CBRE Melbourne City Sales Director Josh Rutman added: “The sale of 111-125 A’Beckett Street demonstrates how established local and offshore developers are continuing to exhibit resilient demand in Melbourne, despite headwinds such as funding restrictions and regulatory changes.
“The sale of 111-125 A’Beckett Street reflected $35,037 per square metre - the highest land rate for a Melbourne residential site of more than 1000sqm.”
CBRE National Director Mark Wizel said the sale represented a 37.3% increase on the 24-month average per square metre land rate of $25,525 for sites sold in the CBD.
Property | Suburb | Sale Price | Sale Date | Land Area - SQM | Permitted | Land $ / SQM |
308 Exhibition Street | CBD | $101,000,000 | Apr-16 | 4,140 | No | $24,396 |
318-326 Queen Street | CBD | $25,600,000 | Jun-16 | 676 | Yes | $37,870 |
7-23 Spencer Street | CBD | $97,000,000 | Jul-16 | 7,100 | Yes | $13,662 |
299 King Street | CBD | $42,600,000 | Sep-16 | 1,295 | Yes | $32,896 |
595-599 Little Collins Street | CBD | $30,600,000 | Dec-16 | 1,254 | No | $24,402 |
95-111 Franklin Street | CBD | $56,000,000 | Dec-16 | 2,096 | Yes | $26,718 |
500 Swanston Street | Carlton | $26,000,000 | May-17 | 1,387 | No | $18,732 |
111-125 A'Beckett Street | CBD | $61,000,000 | Jun-17 | $1,741 | Yes | $35,037 |
Average | $25,525 |
Nearby, CBRE is currently selling 478-488 Elizabeth Street - a dual CBD development site earmarked to accommodate a potential 62-level mixed use development.
