Tim Gurner has spent about $10 million to snap up his fourth South Melbourne development site since 2016.
The 1531 square metre parcel covering the addresses of 77 Park Street and 286 Kings Way were offered with a permit for a mid-rise tower containing 44 apartments.
A church on part of the site is also approved to make way for six townhouses.
The Victorian Civil and Administrative Tribunal approved the residential redevelopment of the site earlier this year.
Mr Gurner, the founder and director of a building company bearing his name, said the property presented an opportunity to deliver stock in a suburb with sustained pent-up demand.
Gurner’s other three South Melbourne projects are located with 200 metres of 77 Park Street and 286 Kings Way and include 74 Eastern Road, Albert Place Residences and The Townhomes – the latter two projects being under construction.
“Our first three projects in South Melbourne were hugely successful, in particular Albert Park Residences where we tested the ultra-luxury penthouse market on a large scale,” Mr Gurner said.
“After witnessing the increasing demand for these types of apartments off the back of our first three projects here, we have been keeping a close eye on South Melbourne…and jumped on this opportunity to acquire a permit-approved site so we can capitalise on the demand and bring product to the market quickly.
“The constant negativity from government, regulators, banks and the media has created a false economy of uncertainty, however when selecting our sites, we try to block out the noise and look at the market fundamentals, and the fundamentals in the inner suburbs of Melbourne remain strong.
Mr Gurner pointed out that Victoria is still recording record migration and that the residential vacancy rate – some 1.5 per cent – suggests serious undersupply issues.
“These factors indicate we are heading towards a rental crisis so I believe we will see prices jump again in the next 18 – 24 months,” Mr Gurner said.
Gurner is expected to launch a campaign for the apartments and townhouses early next year.
“The deal is an excellent outcome for the vendor and the market place,” Mr Wright said. “Gurner has delivered some of Melbourne’s best and most iconic developments in recent years and we are confident this project will be no different”.
In June, it was reported Mr Gurner would team with Barana Group and real estate advisory Alceon to replace St Kilda’s Novotel Hotel, on a 6000 sqm site, with a high-end residential complex containing more than 230 dwellings.