Flinders St site could become Melbourne’s next major precinct

The property, that fronts Spring and Flinders streets, could sustain a multi-billion-dollar development as it spans more than a hectare of land.

The scale of the offering has drawn comparisons to Sydney’s Barangaroo South precinct and is likely to become Melbourne’s next mixed-use precinct.

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The Australian has learned that major local developers are looking for capital partners as they ready for the contest that will pit the likes of Lendlease, Mirvac, Dexus and Charter Hall against deep-pocketed Asian developers that specialise in high-rise precincts.

The contest for the precinct, dubbed by market players as Spring Street South, will begin in earnest once the site rezoning is undertaken with the capacity for at least three major towers.

However, the scale of the precinct has drawn comparisons with the planned technology hub surrounding Sydney’s central railway station where developers, including Mirvac and Charter Hall, have previously sought to lure tech giant Google with custom-­designed buildings.

Local company Atlassian has already flagged its commitment to moving to the precinct around Central station and the Melbourne site could also be purposed as a hi-tech area.

Potential buyers also suggested that the site would also be well-suited for some high-rise apartments as part of the project.

Notably, Cbus Property’s 44-level twin-tower project at 447 Collins Street combines office, hotel and residential uses and could be a model, as the developer also drew in backers like ISPT.

All major listed players are pursuing larger precinct-style developments and snaring the site would be a milestone for them.

Dexus and Charter Hall are already undertaking precinct-style office developments on Collins Street. Mirvac has also called out its focus on precincts as a way of creating value, and AMP Capital is taking this approach at its Circular Quay Quarter in Sydney.

Development heavyweight Lendlease is also active in the Victorian capital, last week winning approval for the final tower in the near-$3bn Melbourne Quarter project.

A VicTrack spokeswoman says the body “regularly reviews its holdings across the state, to identify sites which could be sold to generate revenue to reinvest into public transport”.

The authority has a long-standing practice of disposing of properties when they are no longer required for transport purposes. This gives VicTrack the option to sell the land it owns at a value that reflects its highest and best use.

VicTrack declined to comment further, but the offer is expected to set the tone for the Melbourne market this year.

This article originally appeared on www.theaustralian.com.au/property.