Richmond mixed-use development could link to Victoria Gardens

A Richmond development is set to add more than 400 apartments next door to Victoria Gardens, but none of them are for sale.

Yarra City Council has approved plans for the five-building, and up to 13-storey mixed-use development expected to cost more than $390 million to build over the carpark and an empty paddock neighbouring the popular shopping centre.

Developer Salta Properties co-owns Victoria Gardens with Vicinity Centres, and intend to add 5500sqm of restricted retail space and showrooms, 3369sqm of shops, plus 859sqm of food and drink vendors to the 14,766sqm site.

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Managing director Sam Tarascio says they have seen improvements in the shopping centre’s patronage in recent years and are now taking an opportunity to further expand it.

But the ultimate decision to link the new development to Victoria Gardens would need Vicinity’s support.

“We have certainly designed the retail component that sits on our land with the potential to be another link with the shopping centre,” he says.

The developer will also take the unusual step of hanging onto all 426 of the apartments it will build as part of the project.

Current plans show a 3000sqmpark will separate the development from Victoria Gardens.

The Victoria Gardens shopping centre has a diverse range of shops in place.

With low apartment vacancy rates in the area, and a combination of convenience and employment on the doorstep, designing it as a build-to-rent project makes sense, Tarascio says.

“We think that it follows that build-to-rent on the large scale will fit in that market very well,” he says.

“We are starting with the objective of doing build-to-rent.”

The development will include 81 apartments with one bedroom, 322 with two bedrooms — including 10 double-storey apartments, and 23 with three bedrooms.

They are being aimed at people looking to rent in a building that is managed by the same group that owns their home.

“There’s been a lot of talk about build-to-rent catering to the low-income market, and it’s an important part of build to rent, but what we are focusing on is ‘at market’ build-to-rent,” Tarascio says.

“People’s attitudes towards their housing choices are changing, there are more people and families who are choosing to rent rather than buy because it suits their lifestyle.”

City of Yarra mayor Daniel Nguyen says the addition of rental properties is needed.

“What it brings is consistency, as opposed to having a combination of owner-occupiers and renters, and having land lords with different plans … having a single consistent land lord allows for people to have more consistent tenancies,” Nguyen says.

It will also add to the housing diversity available in the area, he adds.

Salta Properties have another build-to-rent development underway at 699 La Trobe St, Docklands.

This article from the Herald Sun originally appeared as “Victoria Gardens neighbour could be linked to shopping centre”.