Indian developer plans $600m Southbank project

Indian billionaire Rakesh Wadhawan is planning a $600 million mixed-use project, at Southbank.

The Mumbai-based family business – headed by 55-year-old Rakesh, who is worth about $2.5 billion – is formalising the purchase of three sites between 400 and 430 City Road for the venture.

The amalgamated site will span over 12,000 square metres.

It is speculated to be costing more than $40m.

Sources anticipate it will accommodate up to five high-rise apartment buildings, a luxury hotel and retail spaces.

The parcel fronts City Road, and Whiteman and Cecil streets, near South Melbourne Market.

Wadhawan’s biggest property projects are in Mumbai and Dubai – major high-end residential buildings, and offices

It has recently been diversifying, however, recently announcing Spinach, a 1500-store supermarket chain. Also on the cards is a food-packaging business.

The Southbank site is known in agency circles as the City Road Wedge, and was held by millionaire car dealer Izzy Herzog, who subdivided and sold it in the 1990s.

Gross Waddell’s Joseph Carbone was the sales agent, but declined to comment.

Apartment builders busy buying

Developers have swooped on several major Southbank sites this year.

Last month, a consortium led by Benni Aroni paid $14.2n for a 2642 sqm site at 70 Southbank Boulevard, while another private investor spent $6.1m for a block at the corner of City Rd and Clarendon Streeet.

In Sturt St, LAS Investments recently acquired the ex-Collins Mitsubishi from Drapac for $13.5m with plans for apartments.

The City of Melbourne has talked about beautifying City Road for years.

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Marc Pallisco

A former property analyst and print journalist, Marc is the publisher of realestatesource.com.au.

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