PDG Corporation seizes part of former JH Boyd Girl’s School in Melbourne’s Southbank from council

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.

A site plan, produced by the City of Melbourne, showing the location of the proposed PDG skyscraper, the Boyd Community Hub and two garden spaces (Village Green and North Lawn).

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.

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Marc Pallisco

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