Steller receivers seek to sell St Kilda’s former Greyhound Hotel site

Another site controlled by failed developer Steller has hit the market.

The St Kilda block at 1 Brighton Road accommodated the Greyhound Hotel (pictured bottom, right), which was razed two years ago, after standing 164 years.

Steller acquired the 911 square metre parcel for $7.5 million in late 2017.

The site came with a permit for a seven level residential building containing 37 flats and ground floor retail.

The 911 square metre corner site at 1 Brighton Road, St KIlda, is being offered with a permit for a seven storey building with 36 flats and ground floor retail.

That permit is again being offered with the site.

CBRE will auction 1 Brighton Road on November 22.

Julian White, Mark Wizel, David Minty and Chao Zhang are managing the Mortgagee Sale for KordaMentha.

Steller tried to sell the site last year – initially for $8 million, then for less than $7 million.

It was withdrawn from sale when the developer didn’t find a buyer.

Despite finding financial difficulty earlier this year, Steller repeatedly refused to list the St Kilda block.

Steller sites sold, elsewhere

Yesterday we reported that a Rosebud farm controlled by Steller sold following a Mortgagee in Possession auction for $4.65 million – a sharp drop on the $7 million the builder paid in 2016.

Last month we reported that Ryman Health paid Steller $28.5 million for a 1.2 hectare aged care development site in Highett, in Melbourne’s south east. Steller turned a profit on this one, as it paid $20 million two years earlier before obtaining a permit for a 122-bed aged care complex.

Steller also sold an office investment with development upside in Highett, in June – reaping $3.4 million.

In August Steller sold a small office development site in the St Kilda East pocket of Balaclava for less than $2 million. It paid $2.4 million in 2017.

The St Kilda site is at the south east corner of Brighton Road and Blessington Street, near Carlisle Street.

The Continental Hotel in Sorrento, for which Steller is a joint venture partner, is also for public sale. Expected to trade for more than $20 million, any incoming owner would have to invest a further, speculated $40-million-plus, to complete a renovation of the heritage protected property.

The former Greyhound Hotel from Google’s Street View in 2015.

An East Keilor site owned by Steller has been withdrawn from sale, however.

The subject of a VCAT application which could see it replaced with a large townhouse project, this block might be worth more once that permit is approved.

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Marc Pallisco

A freelance property analyst and journalist, Marc is a co-founder of realestatesource.com.au.

Marc Pallisco
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