State government arm VicUrban has paid a speculated $7 million for a development site in bayside Melbourne – and strategically aligned itself to acquire a much bigger site next door.
The 15,000 square metre parcel at VicUrban has just purchased, 329 Bay Street, Cheltenham (pictured, top), houses buildings where fighter planes were manufactured in the second world war.
It abuts a unique rectangle-shaped CSIRO facility that stretches almost the full distance between Bay and Highett roads. In recent years it has been speculated this massive site would be vacated and rebuilt as housing, with VicUrban touted as a possible developer.
It’s expected VicUrban will demolish buildings on the 329 Bay Street site and redevelop the property as a large commercial and residential village.
Nichols Crowder director Matt Nichols marketed the property but declined to comment on any part of a deal when contacted by Capital Gain.
Late last year the Kingston City Council paid $22 million for the prominent office it rented, at 1230 Nepean Highway, Cheltenham. It has subsequently snared tour bus operator Australian Pacific Touring (APT) as an office tenant for 3200 square metres, paying a reported annual rent of $200 per square metre.