Steller receivers are set for another eight-figure payday with the listing of an enormous parcel of land in Melbourne’s south east Oakleigh.
The 6327 square metre offering, covering the addresses of 771-781 Warrigal Road and 1-9 Allen Street, is expected to sell for more than $13 million according to sources.
The block comes permit-ready for a 136-bed double storey aged care facility.
Steller had to work hard for permission to build the complex: approved last October by Monash City Council, it was objected by locals who appealed to the Victorian Civil and Administration Tribunal.
VCAT ultimately approved it in April with some minor changes related to setbacks.
By that stage, Steller has stopped construction at several of its development sites, including Sorrento’s Continental Hotel.
The apartment builder was put into receivership in July.
In the last quarter of this year, several sites as well as this Oakleigh one have been listed for sale by various receivers (see the section marked ‘Steller state of play’ in our recent story, here).
Last Friday, KordaMentha banked $6.25 million selling the St Kilda block which until 2017 accommodated the Greyhound Hotel.
A day earlier, we reported $6.5 million was recovered from the disposal of a Frankston site until recently permitted to make way for that suburb’s tallest building.
The Oakleigh offering
The most straightforward suitor is an aged care provider seeking a permit-ready infill parcel.
In September, Ryman Health paid $28.5 million for a 1.2 hectare Steller block in Highett which, like Oakleigh, was offered approved for an aged care development (this deal has been one of the few to return a sizeable capital gain, with Steller paying $20 million for the property in two tranches, last year).
However, Colliers is marketing the Oakleigh parcel for its potential to make way for a medium density apartment or townhouse complex.
The land is zoned residential, allowing for an incoming owner to propose a new development outcome.
It is also only a few hundred metres from the Chadstone Shopping Centre, which has seen a wave of developments, including towers rising up to 12 storeys, built in recent years.
The Chadstone complex also accommodates a sophisticated public transport (bus) network – meaning 771-781 Warrigal Road and 1-9 Allen Street could be considered for a mixed-use complex rising much taller than Steller’s proposed two levels.