Steller receiver banks c$6.5 million from site earmarked for Frankston’s tallest tower
EXCLUSIVE
McGrathNicol has sold a high-profile Frankston development site until recently controlled by Steller, which went into receivership in July.
The 3301 square metre plot at 6-12 Davey Street – just over a hundred metres from the beach – was between 2014 and 2018 set to make way for a 17-storey apartment building, which would have been the suburb’s tallest building.
The widely reported project (artist’s impression, top) can still be found featured, here, on the website of its designer, Finnis Architects.
It is selling to an as-yet-undisclosed, local apartment builder following a campaign managed by Savills Julian Heatherich, Benson Zhou and Yvonne Zhou.
All agents declined to comment about the deal.
The sale price speculated to realestatesource.com.au – $6.5 million – is well over the $4.65 million Steller paid for the permit-ready parcel in mid-2017.
McGrathNicol is selling seven former Steller sites in an attempt to recover a $97 million debt for its client, Asia based financier, OCP.
Last month, it put a permit-ready Steller block up for sale in Richmond, in Melbourne’s inner east.
Another receiver, KordaMentha, has also recently seized a portfolio of Steller assets. Subsequently listed, these development sites are in Preston, and Cheltenham.
This week, another, in Carnegie, was offered via agencies Castran and Bernard Corser.
Other Steller blocks, in Rosebud, the St Kilda East pocket known as Balaclava, and two in Highett – a low-rise office and a permit-ready proposed aged care complex – have recently sold.
On Friday, the 1 Brighton Road, St Kilda, block which accommodated the Greyhound Hotel sold for $6.25 million – or $1.25 million less what Steller paid in 2017.
A former caravan park, again in Rosebud, is expected to trade shortly.
However, an East Keilor block earmarked for townhouses was recently withdrawn from sale as the application for the redevelopment is decided by the Victorian Civil and Administrative Tribunal.
Steller’s site was earmarked for Frankston’s tallest building
Zoned Activity Centre 1, and near the corner of Nepean Highway, 6-12 Davey Street was in 2014 permitted to make way Frankston’s tallest building, rising 52.5 metres.
With 63 flats (all with two or three bedrooms), it was hoped the project would spearhead high-rise residential development in the area, opposite Frankston Foreshore.
Interestingly, the application did not receive an objection.
The proposed building would have been constructed behind local pub The Deck, and capture unobstructed, west-facing, water views.
…but construction never started and council accused the developer of land-banking
This permit was extended in 2016, for two years.
However last December, Frankston City Council denied Steller’s request to postpone development again.
Councillor Sandra Maher went one step further and accused the developer of land-banking.
In fact, at the time – months after it started an $80 million renovation of Sorrento’s Continental Hotel – Steller was probably realising it could be facing construction funding issues – which culminated publicly, exclusively, by us, last April.
Details about what happened with – and is set to occur at – the Continental Hotel site can be found at our story here, or podcast, here.
Prior to Steller becoming involved, the Frankston land last traded in mid-2014, for $1.87 million.
Ten years ago, the site accommodated a large, brick, Presbyterian church.
