UEM Sunrise is paying Jowett Motor Group $43 million for a row of car yards on the Collingwood side of Hoddle Street, in Melbourne’s inner east.
The 5390 square metre site on the south west corner of Langridge St was unsuccessfully marketed 11 months ago with price hopes of c$40m.
The incoming owner plans to develop a mixed-use project at 21-53 Hoddle Street.
“This acquisition is a perfect example that well known and sophisticated capital remain active and see positive fundamentals in both the Melbourne residential and commercial property markets,” Mr Hay said.
He added the Collingwood suburb profile ticks core fundaments sought by occupiers including close proximity to CBD, education and transport, as well as a thriving working-age population which has attributed the suburb with a newborn status as the emerging office and residential precinct.
UEM broadening its wings in Melbourne is part of new strategy
The new site forms part of a broader expansion strategy for UEM Sunrise, its managing director and chief executive officer, Anwar Syahrin Abdul Ajib, said.
To date the company also known as UEM Sunrise Berhard has focused on city properties where it can build major skyscrapers.
UEM is behind Aurora Tower, a 92-floor structure – the tallest mixed-use development in the city – which replaced rundown offices and a laneway at 224 La Trobe St, opposite Melbourne Central.
It has constructed another apartment complex, Conservatory, at 9-23 McKenzie Street in the city, and had proposed one for the former Victoria Police headquarters at 412 St Kilda Road.
“Following the success of our Aurora Melbourne Central and Conservatory projects, the acquisition of the landmark Collingwood site signals a new chapter in Melbourne for UEM Sunrise, and continues our active presence in the Australian market,’ Mr Syahrin said.
“There’s no doubt that Collingwood has evolved into a go-to residential and commercial precinct, thanks to its close proximity to the CBD, vibrant café culture and wonderful sense of community.
“UEM Sunrise looks forward to bringing our development expertise and vision to the area, to deliver quality residences and commercial spaces for the Melbourne’s growing population and help stimulate job creation via the project’s delivery.
“The Melbourne commercial and residential sector continues to remain strong despite challenges presented from the global COVID-19 pandemic, with the Victorian Government committed to ongoing development and approval of shovel-ready projects. We are optimistic when it comes to strategic and well positioned opportunities”.