The 20-hectare former basalt quarry site is located on Duke Street and makes up stages four and five of the River Valley Estate project.
CBRE’s Julian White said capital had been shifting into suburban Melbourne development sites throughout 2017.
“Due to heightened restrictions in the Melbourne CBD and city fringe markets, buyers are capitalising on local councils’ willingness to encourage suburban developments,” Mr White said.
“This offering was also perfectly timed to capitalise on strong demand from developers for medium density townhouse developments in established suburban areas - particularly those with vast retail amenity and employment drivers as well as proximity to educational institutions and key infrastructure.”
The Sunshine North site is situated just nine kilometres from the Melbourne CBD, with views of the city and frontage onto Maribrynong River. It is also close to multiple public transport options, retail centres and expansive parks and recreation facilities.
YourLand Developments Fund Manager Mark Erskine said; “YourLand Developments is pleased to announce the sale of stages four and five of River Valley Estate to Pace Developments. Working with CBRE, we undertook an exhaustive search for the right buyer that can deliver the built form outcomes of the broader development plan we have created.”
Mr Erskine added; “River Valley is one of the largest infill developments in Melbourne and is targeted to become a complete community with townhouses, retail, housing allotments and a wide range of other uses. This is a multi-generational community with opportunities for first home buyers, families and retirees.”
Pace Development Group Managing Director Shane Wilkinson said the acquisition presented an opportunity for the company to continue developing activated, community focused housing that would add genuine value and amenity to the suburb.
“We’re looking forward to working closely with the local council to bring this project to life. It will deliver townhouses on the river’s edge, within walking distance to what to what is envisaged to be a new and exciting shopping precinct with both supermarket and retail to service the new community and surrounds,” Mr Wilkinson said.
CBRE’s Mr White said the Sunshine North sale had been finalised amid booming residential market conditions in Melbourne’s inner west.
“The area’s revitalisation and forecast population growth of 9% over the next 15 years have been key market drivers,” Mr White said.
This has spurred significant interest in major townhouse development site sales in the past six months as highlighted below:
2-32 King William Street, Broadmeadows
2A Beachley Street, Braybrook
500 Burwood Highway, Vermont South
2-6 Walter Street, Hadfield
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About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2016 revenue). The company has more than 75,000 employees (excluding affiliates), and serves real estate investors and occupiers through more than 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.