Steller receivers sell East Keilor bluff

The site (marked) is about 13 kilometres north west of Melbourne’s CBD.

EXCLUSIVE

KordmaMentha, representing creditors for failed developer Steller, has sold a creek-side East Keilor block adjacent to the Essendon border.

The 1.3 hectare bluff extending from Craig Street to Rose Creek Reserve and Steel Creek is speculated to be trading for about $5.3 million but this could not be confirmed.

Artist’s impression of the permitted Craig Street townhouses.

Steller is understood to have paid about $8.25m in August 2017 – about a month before what is considered to be the last market peak.

It comprises 12 Craig Street – a 6428 square metre site permitted for 22 townhouses (artist’s impression top and right).

Connected to this property from the backyard is 18 Craig Street – spreading 6556 sqm.

Combined – prior to Steller going under – the addresses were the subject of a planning application set to be decided by the Victorian Civil and Administrative Tribunal, for a complex with 47 units.

Colliers International’s Hamish Burgess, Joe Kairouz and Trent Hobart marketed the property, which was also listed last June via a different agency, then withdrawn.

The agents promoted that the “proven townhouse location and incredible aspect over rich parklands” would create “a highly desirable development proposition in Melbourne’s inner north”.

On a similarly sloping site north of 18 Craig Street, a developer recently constructed 36 dwellings around a zig-zag road.

Rose Creek Winery abuts the outgoing Steller site, at its south.

St Bernard’s College is visible while Penleigh and Essendon Grammar School’s senior school is a little further west, but also in East Keilor – a suburb 13 kilometres from the city.

The 1.3 hectare site has nearly 100 metres of Steel Creek frontage.

As well as traditional residential developers, Colliers International invited developers of alternative product including aged care.

The Craig Road deal comes nearly two months since the high profile and permit-ready Continental Hotel at Sorrento sold to Trenerry Property Group for c$14.5 million, far less than the c$21m it traded for last September – a deal which fell over in the days after it was reported.

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Marc Pallisco

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

Marc Pallisco