Malaysian developer SP Setia has purchase one of the last remaining permit-approved sites in the Melbourne CBD’s northern end for $61 million.
The 1,741sqm property located at 111,125 A’Beckett Street – known as Paradigm - has been earmarked for a 210 metre residential tower, accommodating 632 apartments and ground floor retail. The property currently houses a Harley-Davidson dealership.
Tong Eng Group Director Emilia Teo commented on the transaction: "We are extremely satisfied with the sale of 111-125 A’Beckett Street, which delivers an attractive return on investment for the group. It reflects the strong appetite for well-designed residential assets in the Melbourne CBD.”
The purchase will mark SP Setia’s sixth development in its Melbourne portfolio, with other projects including Fulton Lane at 151-165 Franklin Street, Parque at 555 St Kilda Road and the recently-approved 250-metre-tall twin tower development at 308 Exhibition Street, which will include over 300 luxury apartments, office space and a five-star Shangri-La Hotel.
CBRE Melbourne City Sales Director Josh Rutman added: “The sale of 111-125 A’Beckett Street demonstrates how established local and offshore developers are continuing to exhibit resilient demand in Melbourne, despite headwinds such as funding restrictions and regulatory changes.
“The sale of 111-125 A’Beckett Street reflected $35,037 per square metre - the highest land rate for a Melbourne residential site of more than 1000sqm.”
CBRE National Director Mark Wizel said the sale represented a 37.3% increase on the 24-month average per square metre land rate of $25,525 for sites sold in the CBD.
Land Area - SQM
Land $ / SQM
308 Exhibition Street
318-326 Queen Street
7-23 Spencer Street
299 King Street
595-599 Little Collins Street
95-111 Franklin Street
500 Swanston Street
111-125 A'Beckett Street
Nearby, CBRE is currently selling 478-488 Elizabeth Street - a dual CBD development site earmarked to accommodate a potential 62-level mixed use development.
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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.