Central Equity has abandoned plans to redevelop the former Kingsway Motel, in South Melbourne, and has instead listed the site for sale.
The former ASX-listed developer can expect about $15 million for the 2092 square metre property, which includes two terrace houses and the prominent six level, 41 room motel at 142 Park Street, at the north-east corner Eastern Road.
Central Equity paid $6.25 million for the property just over three years ago, before obtaining a permit to more than double the number of apartments on the site, opposite Latrobe Reserve.
Since the 2008 economic downturn, the cashed up Central Equity has reweighted its development pipeline snapping up properties which would yield more units than the BizMOTEL block.
In the immediate area, Central Equity recently paid Crown Casino $13.1 million for its former training college at the corner of City Road and Power Street, and is proposing to build a 43-level, 513 unit complex on a part of it.
In the CBD, Central Equity purchased the eastern most part of the former Age site, in Lonsdale Street, and is proposing two major towers.