50 years in the making – sale of major St Kilda site

170-172 Chapel Street, St Kilda VIC

A 3,469sqm landholding on the corner of Chapel Street, Brighton Road (Nepean Highway) and Grosvenor Street, in St Kilda has been unconditionally sold after nearly 50 years of ownership, in a deal handled by Julian White, Justin Dowers and Chao Zhang from Stonebridge Property Group.

The property, owned by the Thurston family, who had the first Toyota in Australia, acquired the site in 1973 and used it as a serving depot for cars before the site in more recent years being leased to Australia Post as a distribution centre, with the lease extending to August 2024.

However, it was demand from developers that lead to the sale price of $23,500,000, representing $6,774/sqm on the land. The planning scheme provides for the potential for five to six levels over the site.

The international expressions of interest process was highly competed and generated 245 enquiries and 14offers from a varied developer profile. “Offers were received from a range of local and Asian based apartment developers, four build to rent groups, as well as a party looking to complete a vertical retirement living concept” said Stonebridge Partner, Julian White.

Buyers were attracted to the high level of amenity offered in the precinct, as well as the inner- city positioning, as well as many apartment developers predicting improvement in the apartment market over the next couple of years and looking to secure good quality sites for their pipeline. “Apartment developers were the most aggressive in this campaign, highlighting the growing optimism in this sector off the back of the current biggest spread in house and unit price median in history of recording. Something needs to give and apartments being targeted by home buyers for affordability reasons is the most likely outcome.” Continued Mr White.

Stonebridge recently celebrated its first year anniversary in business in Victoria, with this sale following a number of other development deals struck by the agency in recent months in this precinct, including: