China-Based Developer Buys Major St Kilda Road Development Site

The 4645 square metre site includes a cheap-to-demolish low rise, 4564 square metre building with a massive 574 bay car park. The last tenant vacates the office in 2015, unless a relocation arrangement can be struck earlier.

Source speculate the Clemenger BBDO site could make way for two major towers with a combined end value of around $400 million, depending on how dense the proposed project is.

Clemenger BBDO House was offloaded by Industry Superannuation Property Trust which paid syndicate Domaine $29.6 million for the asset in October, 2006.  The syndicate, which was majority controlled by Mirvac, paid $20.3 million for Clemenger BBDO House in 2001 – meaning the asset has doubled in value in just nine years.

A representative from Sunnyland’s new national headquarters in Bourke Street was unavailable for comment when contacted by Capital Gain. Jones Lang LaSalle selling agents Robert Anderson and James Kaufman declined to comment.

Based on a development formula it has adapted in China, Sunnyland has quietly been building a portfolio of assets it can develop later – in the CBD, Docklands and Melbourne’s eastern suburbs.

Offshore interests, particularly from Asia, have become more confident to invest in Victorian residential projects in part because of controversial laws imposed by the Rudd-Gillard removing a Howard government imposed cap of 50 per cent, once the maximum number of apartments a foreign-based investor could buy within new complexes.

Some other major sites sold to Asia-based developers recently include the former St Kilda Post Office, the former Lonsdale Street Power Station, and sites on Mackenzie and Franklin streets at the top of town.

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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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