Victorian State Government Pays $21 Million For Riverfront Development Site, Footscray
Any medium or high-rise redevelopment would offer city skyline and bay views, albeit around petrochemical plants dotted around Coode Island and the inner south-western suburbs.
The land is within 15 hectares recently rezoned from Industrial to Priority Development, which allows both commercial and residential proposals. Known as the “Joseph Road Precinct”, the area affected is currently a collection of factories and grassland, south of the train tracks between the Footscray and South Kensington stations.
Since 2007, developers have been buying and amalgamating major sites in the precinct.
Complexes of about ten levels, or more, have been proposed. But despite favourable residential market conditions, no major project has been marketed for sale.
Sources estimate VicUrban’s new Footscray site could yield a mixed use project with several towers. Its end value is speculated at between $200 – $250 million, which would make it the suburb’s second biggest proposal.
VicUrban said it purchased the Le Mans property on a 24 month settlement.
“The site is a critical gateway to Footscray and is in the heart of the Joseph Road precinct,” VicUrban acting chief executive officer Sam Sangster told Capital Gain. “In considering the plans for this site VicUrban will examine opportunities for partnerships across the site with a number of private developers.”
Colliers International’s marketing agent Shane Dargue declined to comment when contacted about the sale. The Footscray sites have street addresses of 4 Hopkins Street and 1 – 3 Nielson Place.
Last month VicUrban awarded local developer Grocon a $350 million contract to redevelopment a site abutting the Footscray train station, nearby.
Grocon plans to replace a disused bowling club on McNab Avenue with a village of shops, offices and apartments.
Equiset, Metier3, Salta and Equity Pacific Capital Partners also vied for the opportunity to redevelop that site after VicUrban’s tender campaign launched late last year. Like the Le Mans property, the McNab Avenue site measures 1.3 hectares.
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