Riverlee pays $7.9 million for Cheltenham site, launches Belrose business park

Riverlee is intending to construct a business park on a 1.15 hectare building block it has just bought in bayside Cheltenham, 18 kilometres south of the Melbourne CBD.

The developer paid $7.9 million for 9 Ambrose Avenue (pictured, top, shaded) following an off-market deal which settled last quarter, managed by Knight Frank’s Gab Pascuzzi and Stuart Gill.

The Commercial 2 zoned holding within the region’s business district abuts several industrial properties accessed from busy Reserve Road.

To its east is a new townhouse project.

Victoria Golf Club is at the end of the street while Sandringham Golf Course is around the corner.

Mr Pascuzzi said it is difficult to acquire Cheltenham developments sites between 5000-10,000 sqm, as a majority of these blocks are owned by occupiers.

The sale price values every square metre at $687.

Belrose Cheltenham

Riverlee has already launched a marketing campaign to sell down the 56 units – a mix of offices and warehouses – planned for site.

The project, branded Belrose, is due for completion in 2022.

It will also contain a food and beverage offering.

“There is strong demand for office and warehouse strata in the area with occupiers looking to remain in bayside and upgrade into new facilities,” Mr Pascuzzi said.

“The interest will come from tenants within the area looking to become owners with the low finance environment, occupiers looking to remain in the precinct and local private investors attracted to the location being close to their existing residence”.

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Marc Pallisco

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