Former Melbourne Convention Centre site sold again
Property developer Mirvac has purchased the former Melbourne Convention Centre site for $200 million, with plans to create a build-to-rent precinct in the heart of the CBD.
The 7-23 Spencer St address is one of the last sites available for development in the heart of the CBD and is strategically located close to Southern Cross and Flinders St railway stations and Melbourne’s arts and entertainment hubs.
The developer is seeking approval to create a mixed-use “urban neighbourhood”. Plans include a 4000sqm office complex and a build-to-rent apartment tower of about 430 apartments, to be complemented by a high-quality retail offering.
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In build-to-rent, the developer retains the apartments and leases them instead of selling.
Mirvac’s CEO and managing director, Susan Lloyd-Hurwitz, says the acquisition offers the group a “unique opportunity” to strengthen both its commercial and build-to-rent portfolios.
“Flinders West is earmarked to be one of Melbourne’s most transformative precincts over the next three to five years,” Lloyd-Hurwitz says.
“This site provides us with an opportunity to add to our high-quality Melbourne office portfolio and grow our burgeoning build-to-rent portfolio in a location supported by strong transport links, ongoing infrastructure investment and favourable demographics.
“By potentially offering large and efficient floor plates in excess of 2000 square metres, along with exceptional views of the Yarra River, we believe that this will be one of Melbourne’s most sought-after office development opportunities. The increasing demand for rental properties in Melbourne’s CBD also makes this a perfect location for our next build-to-rent project.”
Mirvac will pay for the $200 million site in instalments, with settlement and planning approvals expected to occur between March 2020 and August 2021.
Century Group Aus previously owned the Spencer Street site after purchasing it in 2016 for $97 million. The developer gained approval in 2018 for an $800 million triple tower of 700 dwellings, made up of more than 500 apartments and 168 luxury hotel rooms.
This article originally appeared on www.theaustralian.com.au/property.
