Car park may fetch $12m

A private developer seeking to cash in on strong demand for Melbourne development sites has put a city car park on the market.

A private developer seeking to cash in on strong demand for Melbourne development sites has put a city car park on the market.

The small two-level car park at 399 Little Lonsdale Street adjoining the University City Apartments building will be sold with permits in place for a 39-level Peddle Thorpe Architects-designed residential tower.

The property, owned by Clement Lee's Riverside Group, is one of a dwindling pool of city car parks that are popular with investors and developers.

Property investor Jimmy Goh this month sold a substantial car park nearby at 224-250 La Trobe Street for $43.135 million without a permit, to Malaysian developer UEM Sunrise Berhad.

Earlier this year a car park at 517 Flinders Street also changed hands.

The Little Lonsdale Street car park is next door to a three-storey office building that has permits for a 57-level tower, CBRE selling agents Mark Wizel and Josh Rutman said.

The car park is for sale by expression of interest with price expectations around $12 million.

Mr Rutman said larger offshore development companies were now moving in the market.

"Whilst private offshore developers have been active in this space for some time, we are starting to see strong inquiry from listed offshore groups such as UEM Sunrise Berhad and Hiap Hoe [Limited]," he said.

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