Adjoining Steller blocks in central Cheltenham put up for sale by KordaMentha

A string of sites once controlled by failed developer Steller have been listed for sale in recent weeks by receivers.

In the south east Melbourne suburb of Cheltenham, a 1371 square metre corner site covering 9-21 Station Road and 23 and 23A Station Road, is the latest.

The holding is configured with seven strata titled shops.

Six of them occupy land permitted to make way for nine-storey building with 65 apartments, two large office suites and four ground floor shops.

Only two of the existing retail investments are tenanted – returning a total annual rent of $69,950.

Goldfields Group and the Shachter Group replaced the Arnos factory with a major apartment complex, seen at the top in this image. The sites for sale now (outlined) are permitted for a nine-level project.

The Activity Centre 1 zoned parcels are near the Cheltenham train station which is undergoing a major upgrade.

Steller, via Paul Pitard, applied to redevelop the Cheltenham site in late 2016.

The developer spent the next 12 months on a spending spree picking up a number of sites in the lead up to the property cycle peak (September, 2017).

Earlier this year, Steller was caught out in a funding crisis with many of its projects put on ice – Sorrento’s Continental Hotel perhaps the highest profile.

In July it was put into receivership and since then the builder, along with receivers and mortgagees, have been offering the portfolio for sale.

Interestingly, some offerings – like a townhouse block we reported about in East Keilor – were withdrawn from the market.

Many – like a Rosebud farm we reported about last month – exchanged at a loss.

In rare cases, for example, 32-40 Graham Street in Highett – receivers scored a capital gain.

KordaMentha, the mortgagee of the Cheltenham property, has appointed Savills – the agency which closed the Graham Street Street deal.

Only two of the seven shops are tenanted – this one at 9-11 Station Road, to a cafe.

Julian Heatherich, Benson Zhou and Mark Stafford are closing an expressions of interest campaign for the Station Street properties on November 20.

Elsewhere in Melbourne this week, we reported about another permit-ready Steller block, in Richmond, which was listed for sale with price hopes of more than $16 million.

The Richmond property is one of seven, worth a total of about $80 million, which receiver McGrathNicol plans to sell to recover a speculated $97 million for its client, Asian financier, OCP.

Two shops, 23 and 23A Station Road, will be offered separately to the permit-ready component.

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Marc Pallisco

A freelance property analyst and journalist, Marc is a co-founder of realestatesource.com.au.

Marc Pallisco
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