St Kilda Road precinct ‘super site’ for sale - JLL
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St Kilda Road precinct ‘super site’ for sale - JLL
Bayview on the Park hotel Melbourne landholding for sale by JLL's Josh Rutman, Peter Harper, Piers Jalland and Nick Macfie.
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JLL Hotels Australia
One of the largest and last remaining development sites in the St Kilda Road precinct is being offered for sale in a move that is expected to attract overseas interest and the attention of the country’s most prominent developers.
Totalling 6,966 sqm over a triple land allotment, 50-52 Queens Road, Melbourne is located adjacent to Albert Park Lake and Golf Course and central to Fawkner Park, the Alfred Hospital and leading private schools in Melbourne.
The double-fronted site is currently a five level, 203-room hotel with associated multideck carpark and is known as Bayview on the Park, which paused operation at the start of the COVID-19 pandemic. Its owners, Bayview International Hotels & Resorts, operate another hotel along the boulevard together with 10 other hotels throughout Australia, Malaysia and Singapore.
Bayview International Hotels & Resorts’ Regional Head of Projects and Product Development, Derek Yan said, “Following a number of off-market approaches from developers, and with a strategic focus from the group to continue reinvesting into our global hotel offerings, now is the ideal time to go to market with this prominent site.”
The vendors have exclusively appointed international agency JLL and its team of Josh Rutman, Peter Harper, Piers Jalland and Nick Macfie to manage the transaction.
“We have handled some very prominent land sales in recent years along St Kilda Road and Queens Road, but this is the third largest wholly owned landholding in the entire precint, and we have already seen interest from some of the industry’s large developers who understand the rarity of such an opportunity,” said JLL’s Senior Director, Josh Rutman.
“Whilst the prestige of the precinct has traditionally been associated with the St Kilda Road boulevard, it is in fact Queens Road that benefits from the unobstructed view lines over Albert Park towards Port Philip Bay and Melbourne CBD. It’s no surprise why sites along this thoroughfare have been well sought after when they become available.
“Queens Road has a very sound track record of delivering high quality residential, commercial and retirement living product, and due to the scarcity of such offerings, the take up from the various end users has always been consistently strong,”said Mr Rutman.
“This divestment continues a trend we are seeing across Australia, and particularly in Melbourne, where hotels in prime locations that are nearing the end of their asset lifecycle are worth substianitally more as alternative uses. CBUS and Gurner’s acquisitions of the Mercure Spring Street and Novotel St Kilda respectively for high-end residential redevelopment are two perfect examples,” said Peter Harper, Managing Director & Head of Investment Sales Australasia, JLL Hotels & Hospitaity Group.
“In the current environment we are seeing more and more hotel owners come to us to better understand their options, as in many cases alternative uses can be incredibly lucrative and reward their original decision to invest in assets with strong underlying fundamentals. We’re currently talking to owners about not only redevelopment but also adaptive re-use for BTR, residential and student accommodation,” he added.
The high-end residential market has shown significant resilience during the pandemic and is poised to emerge from the pandemic relatively unscathed because of strong underlying demand, experts say.
It also follows recent news of a record $21m penthouse buyer for Peter Devitt’s nearby 409 St Kilda Road development.
“The St Kilda Road precinct is one of Australia’s most successful high-end residential markets and with such a large and flexible landholding, there are several different strategies that a buyer may employ to take full advantage of the strength of this location,” said Mr Rutman.
“It’s no wonder why developers have been targeting this property – it’s three separate allotments, prominent 91metre dual frontages and stunning uninterrupted views across Albert Park Lake and Port Phillip Bay to the city are incredible development fundamentals for a major project in any market cycle,” concluded Mr Rutman.
50-52, Queens Road, Melbourne will be offered on market for sale by International Expressions Of Interest commencing in early March.
For more information or contact agents Josh Rutman, Peter Harper, Piers Jalland and Nick Macfie via the contact form below.
To view the listing and for more information click here.
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