Public housing trumps developers at prime St Kilda site
A St Kilda property touted for its development potential will instead remain as public housing, after a local housing group overcame developers and a gruelling buyer elimination process to secure the site for $10.1 million.
The City Gate Apartments, which last sold 80 years ago, features 50 self-contained apartments spread across three buildings and has been a refuge for Melbourne’s needy for decades.
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It appeared likely to fall into the hands of developers when it hit the market in July, after attracting interest from more than 150 groups, including local and offshore developers, investors and accommodation operators.
But Port Phillip Housing Association and the State Government pooled their resources to buy the site, which is now expected to be upgraded while continuing to operate as a destination for individuals and families who need a place to call home.
Ultimately it was a great result for the family vendor, which had held the property for more than 80 years
The popularity of the offering on Tennyson St necessitated a two-stage process to sell it, with interested groups first shortlisted and then put through a final to determine the new owner, selling agent and Teska Carson director Larry Takis says.
“We expected the property to draw a lot of interest but we were overwhelmed by enquiry and formal expressions of interest, requiring a two-stage EOI process with a stage one shortlist and a second stage final competitive process,” he says.
A feasibility study had determined the 2370sqm site could accommodate 47 new one, two and three-bedroom apartments, as well as two townhouses, should a developer purchase it.
Takis says the campaign drew more enquiry than any other property they had sold this year.
“Ultimately it was a great result for the family vendor, which had held the property for more than 80 years,” he says.