Sterling Global shelves maiden commercial project, lists site
Sterling Global has listed the prominent South Yarra site bought in 2017 with plans for its maiden commercial project.
The four neighbouring shops at 467-473 Chapel Street is expected to sell for around $12 million.
Covering 673 sqm, zoned Activity Centre 1, a five level – or 18 metre – commercial or residential building could be considered.
Alternatively, containing 734 sqm of area – one of the biggest spaces in the popular retail strip – could be retained as an investment.
Cushman & Wakefield’s Leon Ma, Karim Ford, Daniel Wolman and George Davies have the listing.
Elsewhere in the area, Newmark and Gurner are intending a $1.5 billion revamp of the historic Jam Factory, with apartments, a hotel, offices and more retail, while the Simonds family will construct a headquarters on the ex-Chapel St Huts site it bought for $14.5m early last year.
Meanwhile a little further north, on Toorak Rd, V-Leader recently launched a leasing campaign for the three level retail component of a proposed 12 storey office project, at the Hotel Claremont site, while Oreana is planning a hospitality based mixed use project at the north east corner of Yarra St.
Greystar and Daniel Grollo’s Home, with GIC, are also behind build to rent skyscrapers in the suburb, while Sterling in 2016 completed a six storey, 53 unit build to sell complex incorporating a c1870 building at the corner of Toorak and Ralston roads.
Building boom
Sterling paid $8.25m for 467-473 Chapel St in August, 2017 – a local property peak – settling in early 2018.
Its redevelopment, though never lodged with council, was expected to include retail, offices and, possibly, a hotel (story continues below).
The asset was offered for lease and, in 2019, briefly hit the market for sale.
“Driving the appetite for premium blue-chip, strip retail offerings are strategic inner-city fringe positioning, stable and consistent income streams, strong rental potential and distance to Melbourne’s CBD,” Mr Ma said.
“South Yarra’s excellent connectivity, including tram routes along Chapel St and Toorak Road, and its…proximity to South Yarra station, 750 metres away, ensure effortless access for its occupants,” he added.
Big frontage
The Sterling property has 22 metres of Chapel St frontage.
Local investors, syndicates, developers are expected to look in, Mr Ford said.
“The appeal lies in the land bank, value-add or reposition model to unlock strong rental potential underpinned by a growing local population, net migration and a robust development pipeline, to secure defensive lease covenants, generate high income returns with annual CPI/fixed increases, and mitigate risks through syndication,” he added.
The properties go to auction on August 24.
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