The ACT government is selling the last block of land on the Kingston Foreshore island. Two blocks were sold for residential development in 2009.
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The almost 7000-square-metre block is expected to fetch $5 million to $6 million, taking into account the cost of significant works a developer has to undertake as a condition of sale. These include completing the harbour wall where Lake Burley Griffin's commercial boats will dock.
The land is being sold through a tender process and there has been strong interest.
The successful tenderer can build up to 120 prestige dwellings but will have to provide commercial space on the ground floor fronting the harbour area.
Both previously released blocks on the constructed island were passed in at auction but sold under negotiation in the same week.
A 5216-square-metre block, now the Lake Front apartments, was sold to Amalgamated Property Group for $14.2 million and a 3681-square-metre block, now the Bridge Point development, was purchased by The Doma Group for $9.8 million.
Colliers International ACT state chief executive Paul Powderly said while he expected strong interest in the land, it would not attract the typical high number of tenderers because it was a complex block.
"The site is quite complicated in that it has a series of works that have to be completed,'' he said. ''That means the sort of people interested are more sophisticated builders and developers." Mr Powderly expects the block to sell for $5 million to $6 million after consideration of the additional works.
The Land Development Agency extended the deadline for the tender process to address matters brought up by prospective bidders. It was initially August 15 but has been moved to September 5.
Chief executive David Dawes said the delay was entirely related to the need to provide responses to the questions raised and "to allow the large number of prospective tenderers an appropriate amount of time to consider the answers provided".
Mr Dawes said the land was being sold in one parcel rather than two as indicated by the area's master plan after analysis indicated the layout "did not provide the most efficient configuration for basement parking".
CBRE sales agent Andrew Stewart said there had been strong interest from local and interstate parties.
