Melbourne council banks $51m from car park
The City of Monash has sold a 1.5 acre car park as a development site to an investor familiar with the area.
Runlong Fang, care of a company, Glen Carpark Pty Ltd, is outlaying $50.88 million for 281 Springvale Road, Glen Waverley, following an expressions of interest campaign closed in June.
The executive also holds an interest in the neighbouring Century City Walk and Novotel, after outlaying $145.8m five years ago.
The latest site is expected to longer term yield just over 60,000 square metres of residential product in at least one building, likely flanking retail.
Cushman & Wakefield’s Daniel Wolman, Joe Kairouz, Hamish Burgess, Leon Ma and Marcus Neill were the agents.
Their deal comes nearly 10 years since another government arm – VicTrack – partnered with Consolidated Properties Group to replace another ex-public site, on Kingsway, with an eight storey residential based mixed use building, Ikon.
Glen Waverley is about 19 kilometres south east of Melbourne’s CBD.
Runlong Fang expands Glen Waverley footprint
Council offered 281 Springvale Rd – a 6114 sqm island site bound by Coleman Parade, Kingsway and Railway Pde North – also known as the Central Car Park, after a recent rezoning to Commercial 1, which allows residential.
As part of the sale, a 1000 sqm piece at the western edge, facing Kingsway, must be handed back to council as a plaza with a footpath.
The price paid could also not be less than market value.
The 400-plus bay car park must remain public too, until the site is ready for development, though council has earmarked a replacement multi-level one on the north west corner of Railway Pde North and Euneva Avenue, replacing an open-air one (story continues below).
Six offers came in, the agents said.
“This sale not only sets a record land rate but also highlights the growing confidence in the re-emergence of the suburban apartment market,” Mr Ma added.
“Asian developers, both established and new entrants, along with their capital partners, continue to view Melbourne as a highly attractive investment destination for residential housing,” according to the executive.
“The site’s…zoning and location within a major activity centre, combined with its proximity to well located and planned transportation infrastructure, including the proposed Suburban Rail Loop (East), made it a standout opportunity.
“The sale price reflects a market leading land rate of $8322 per sqm, a testament to the site’s premium value”.
Settlement is scheduled in 90 days.
Construction is expected to commence by 2026.
Mr Fang’s local property portfolio also includes an office on a double block at 509 St Kilda Road – acquired from developer and shopping centre owner John Beville for $163m in 2018.
In 2019, the developer paid Benson Property Group founder Elias Jreissati and his wife, Colleen, $16m for the penthouse at Port Melbourne’s HM@S building, which had been on the market four years.
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