Developer spends $55m for riverfront Melbourne site
An enormous development site abutting the Yarra River in Melbourne’s inner east, with plans for two apartment towers, has sold to Cbus Property.
The 1.04 hectare parcel, 43-67 River Street, Richmond, was offered by the family of the late Nigel Peck, owner of NHP Electrical Engineering Projects, which has occupied an office/warehouse there 44 years.
The result is c$55 million.
The end value of the redevelopment could exceed $400m.
LAWD’s Lukas Byrns, Paul Callanan and Peter Sagar were the agents.
JACX Property’s Michael Jackson and Charter Keck Cramer’s Tom Byrnes were the transaction advisors.
What is planned
NHP will relocate to a Hawthorn East office – the ex-Bunnings headquarters – acquired last August.
The Commercial 1 zoned River Rd site was offered with a scheme for a residential conversion with two towers, the tallest, 13 storeys – and townhouses, all up, 179 dwellings.
The proposal also includes 322 car parks.
Cbus is expected to proceed with a plan this scale.
“A hectare of land with more than 100 metres of Yarra River frontage just three kilometres from the city is very rare,” Mr Byrns said.
“Riverside Richmond [as the property was branded] drew strong interest from developers seeking build-to-sell, build-to-rent and retirement complex opportunities at a very unique site,” he added.
“This site represents one of Melbourne’s most significant, large-scale, mixed-use development opportunities and the strong interest expressed throughout the sale process from high quality developers indicates a clear strengthening in the city’s residential property sector,” according to the executive.
The deal comes a month since we reported the family business operators of Porta Mouldings sold its high-profile ex-headquarters for decades, in Alphington, to Cedar Woods, which is also planning apartments.
A fortnight ago meanwhile, developers, one backed by James Packer, swooped on two outgoing Leo’s Supermarkets, in Kew and Heidelberg.
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