A South Yarra property home to the circa 1886 Hotel Claremont building with a permit for a 12 level, luxury mixed use project, is on the market through Teska Carson Luke Bisset and Michael Ludski, with price expectations of upward of $20 million.

Zoned Activity Centre, the 906 square metre, 189 Toorak Road property, on the corner of Claremont Street, is well positioned in the heart of South Yarra's sought after Forrest Hill Precinct, and offers excellent site access from a combined 85 metres street frontage.  

The current permit allows for development of a mixed use building comprising four shops totalling 712 square metres, 1195 square metres of office space, 57 apartments, and 30 car parking spaces. Activity Centre Zoning provides for a number of development outcomes including residential, hotel, office or build-to-rent (STCA).

Current site improvements include Hotel Claremont Guesthouse & Apartments, a three level, 81 room, Victorian Italianate hotel, and two retail tenancies (Chemist Warehouse & Siricco). The leases, which have termination clauses, currently return a combined annual holding income of $181,500.

According to marketing agents, Teska Carson’s Luke Bisset and Michael Ludski, the sale presents a not to be missed opportunity to secure a permit approved development site in the midst of one of Melbourne’s most popular inner eastern suburbs.

“This is without doubt one of the best inner city development opportunities to come to the market in 2021.

“It offers a grand building with remarkable aesthetics, in a superb location, complete with holding income and a ready to go permit for an exceptional development designed to take advantage of the continuous and growing demand for city fringe apartments.  

“It really amounts to an exceptional development prospect at a very opportune time,’’ Mr Bisset said.

Mr Ludski said while the proposed development, or its ilk, appeared to be the likely outcome the property nevertheless also presented a very attractive proposition for both owner-occupiers and investors.

“The Forest Hill precinct has seen an enormous amount of successful development activity in recent years based on both the quantity and quality of amenity that residents and workers are so attracted to.

“Owner-occupiers or investors in potential development sites in the precinct will of course retain options into the future, subject to zoning and council approval, to maximise site utility and values,’’ Mr Ludski said.  

The precinct and environs has evolved into arguably one of the premier residential and office locations outside of the CBD offering first rate retail and entertainment venues, highly rated shopping strips, the Jam Factory, Capital Grand, The Como Centre and Prahran Market.

The location also benefits from a number of public transport options, including the rejuvenated South Yarra station, as well as quick access to the CBD which is within four kilometres.

“The $12 million South Yarra station upgrade has been driven by the fact that it is the busiest station outside of the CBD with 32,000 people using it daily.

“That is a fair indication of just how much growth there has been in a suburb long touted as one of Melbourne’s most livable,’’ Mr Ludski said.

The property will be sold by Expressions of Interest closing Wednesday, August 11 at 3pm.

To request a copy of the Information Memorandum please contact one of the marketing agents via the contact details below.

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