JavaScript disabled. Please enable JavaScript to use My News, My Clippings, My Comments and user settings.

If you have trouble accessing our login form below, you can go to our login page.

If you have trouble accessing our login form below, you can go to our login page.

Development wave hits city's north


Nicole Lindsay

13-21 Bedford Street, North Melbourne.

13-21 Bedford Street, North Melbourne.

A Chinese investor has paid $13.2 million for an office building in the city-fringe suburb of North Melbourne, an area poised for a new wave of development.

More than $130 million of property in North Melbourne and West Melbourne has changed hands since November, when a Singaporean developer paid $41.5 million for a 10-storey office building at 383 King Street.

The most recent deal involves an office property, owned and occupied by professional group Engineers Australia. It is on a 2076-square-metre site at 13-21 Bedford Street, just off the intersection of Peel and Elizabeth streets.

Six other tenants lease space at the 3000-square-metre office building but they are on short-term leases, with the longest ending in 2017.

Savills Australia agent Nick Peden, who negotiated the deal with Clinton Baxter, said the buyer would keep the building leased for a few years before undertaking a residential development.

The property sold 32 per cent over its reserve, at a new record land rate for North Melbourne of $6358 a square metre, Mr Peden said.

The top three prospective buyers out of the 11 expressions of interest received by Savills were all based off-shore and the campaign attracted 125 inquiries, he said.

Another deal, further north in the suburb, on a 1943-square-metre site at 287-313 Macaulay Road, attracted 80 inquiries and sold for $4.8 million to a local developer with connections to Dubai. It was sold by Knight Frank.

"There are no barriers to North Melbourne development, no need for a Docklands-style taskforce. The infrastructure, the trams, the roads, favourable zoning and the strong community culture are already in place," Mr Peden said. "We are seeing a surge in developer and investor interest."

Other agents are also reporting renewed interest in the area. CBRE agent Josh Rutman said multiple offers were received for a 2271-square-metre parcel of land owned by veterinarian hospital Lort Smith at 15-27 Wreckyn Street.

He said local and off-shore developers were equally keen on the area and prices were far in excess of what was achieved 12 months ago.

HuffPost Australia

Follow Us

Featured advertisers

Special offers

Credit card, savings and loan rates by Mozo

Executive Style