Eight villa unit owners bank $14.1 million banding to sell Box Hill site to developer

A Chinese developer is paying $14.1 million to the owners of eight brown-brick villa units occupying a central Box Hill site.

The deal values each of the dwellings within the complex, 12-16 Shipley Street, at $1.76 million.

Savills Dorothy He, Julian Heatherich and Benson Zhou listed the property late last year as a development play.

Within the Box Hill Activity Centre, the 2061 square metre holding is adjacent to a site making way for a 20-level apartment building, but it is only anticipated to accommodate around a 12-14 storey structure, sources say.

Box Hill Gardens and the Box Hill medical precinct – where MS Limited paid $9.5 million for a low-rise office last year – are in the immediate vicinity.

The site (outlined) in relation to Whitehorse Towers and the Box Hill train station.

The deal for 12-16 Shipley Street values each square metre of the unpermitted land at $6841.

The agents described the address as a “proven development location with numerous successful projects either complete or under construction”.

Amongst them is the Deague Group’s recently completed Whitehorse Towers at 850 Whitehorse Road which contains a 36-level building, the suburb’s tallest.

Golden Age Group is constructing another 36-storey apartment complex, Sky One, at 545 Station Street.

Image of 1/12-16 Shipley Street, Box Hill, from a recent leasing campaign.

Orion International Group last year won approval to build a 29-level mixed-use tower on a 2630 sqm car park at 16-18 Spring Street.

R&F Property Australia is also proposing a 25-storey residential building on a site at 9-11 Prospect Street. It paid $17.6 million for this permit-ready 1475 sqm block in late 2016 – following another Savills campaign.

Last year another residential builder paid $8.25 million for a 1004 sqm parcel next door, at 13 Prospect Street. Savills brokered this deal, too.

Three weeks ago, we reported that a residential builder paid $22 million for an office at 19-23 Prospect Street.

Last October, the St Paul’s Lutheran Church at 711 Station Street was bought by a Chinese apartment developer making their first foray in the Australian market. This 2597 sqm holding traded for $29.5 million.

MS Limited paid $9.5 million for this new Box Hill office in June, 2018.

Also late last year, the Loyal Orange Institution of Victoria banked a speculated $15 million selling a 1.2 hectare block at 325 Station Street, Box Hill South, to a residential builder.

This property would not be permitted to make way for a high-density, high-rise redevelopment.

The sale of 12-16 Shipley Street comes a week after we reported that 20 owners of 21 apartments within a complex at 14 Alma Street, St Kilda, sold the 1070 sqm block their complex sits on, for more than $11 million, to a local builder.

That deal valued each of the dwellings at about $530,000 – twice what they would be worth had they not banded together to sell as a whole.

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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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