PDG Corporation is paying the City of Melbourne $16.5 million for a prominent Southbank development site earmarked to make way for a $200 million mixed-use project – but which instead could become a ‘build-to-rent’ product.
The development agreement, the second between the pair, requires PDG to deliver 1000 square metres of community space across two levels of a skyscraper mooted for 132 Kavanagh Street.
Formerly the JH Boyd Girl’s School, the parcel was proposed to make way for a 32-storey building (artist’s impression, top) containing 216 apartments, 40 of which would be affordable housing, and a hotel.
Abutting busy Kings Way, less than a kilometre south of the Melbourne CBD, part of the redevelopment could now make way for a build-to-rent project, according to PDG director Vince Guiliano.
Two years ago, the City of Melbourne entered another public-private model partnership with PDG for part of the Munro site at the Queen Victoria Market.
This deal would have delivered an $89.7 million community benefit in the form of 56 affordable housing units, a 120-place childcare centre, a maternal child health and family services centre and kitchen, artist’s spaces and a gallery.
Instead, last month, PDG sold the property to Mirvac for $333.5 million on a funds-through basis, and provided it can revamp the permit to allow for 490 build-to-rent apartments.
The deal to sell 132 Kavanagh Street to PDG represents the final component of the school site redevelopment, according to this council statement.
The Boyd Community Hub and a garden called Village Green have already been built.
Subject to planning approval, construction of the skyscraper should commence late next year and be completed in late 2022.