DEC development plans bowled over for 3 years
At a time when offshore developers are priming Melbourne's apartment market, seven DEC-owned buildings in a wedge of land bordered by City Road and Cecil and Whiteman streets are being offered to prospective tenants on three-to-five year leases.
The buildings were once the centrepiece of DEC's Melbourne plans when its parent, the joint India and Dubai-based Dheeraj and East Coast development company, bowled into Victoria in 2008 and began buying sites.
According to Forbes, DEC's owners, the Wadhawan family, are among India's richest, with an estimated fortune of about $875 million.
The family made headlines about four years ago when it snapped up sites in City Road, Beaconsfield Parade, Middle Park and Darling Street, South Yarra.
DEC was given special dispensation by former planning minister Justin Madden in 2010 to put four towers reaching 39-storeys, 1274 apartments, a 288-room hotel and substantial retail space on the Southbank site now covered by a mix of single-to-four-storey offices, warehouses and showrooms. DEC subsequently enlisted Victoria's cricket team to help promote its plans.
But in the intervening period the lack of development activity caused speculation that DEC was selling off portions of the site.
Last October, another DEC project, The Verge, was sold for $7.61 million to 608 Property Group with buyers already having paid deposits on units in the 270-apartment block.
Company spokesman Zach Han denied that any part of the Southbank site was for sale. "I am confidently able to say these properties are not for sale," he said.
The company had postponed the first stage of its tower development in the area, planned for the corner of Whiteman and Cecil streets, for another three years.
"We have everything ready, we're just waiting for the right market," Mr Han said.
The leasing deals are being handled by Lemon Baxter agent Paul O'Sullivan and Knight Frank's Ben Hackworthy.
They cover offices, warehouses, showrooms at 430 City Road, 400-406 City Road, 115 Whiteman Street and 10-24 Cecil Street.
"We've had considerable interest. They are unique buildings," Mr O'Sullivan said.
Frequently Asked Questions about this Article…
DEC Australia has taken its $1 billion-plus Southbank plans off the development playing field for at least three years. The company has postponed the first stage of the tower development and says it is "waiting for the right market" before proceeding.
Seven DEC-owned buildings in a wedge of land bordered by City Road and Cecil and Whiteman streets are being offered to prospective tenants on three- to five-year leases. The available space covers offices, warehouses and showrooms including 430 City Road, 400–406 City Road, 115 Whiteman Street and 10–24 Cecil Street.
DEC Australia is part of the joint India and Dubai-based Dheeraj and East Coast development company and is owned by the Wadhawan family. Forbes has identified the Wadhawans as among India’s richest, with an estimated fortune of about $875 million.
In 2010 DEC was given special dispensation to develop a major project on the Southbank site: four towers up to 39 storeys, 1,274 apartments, a 288-room hotel and substantial retail space, replacing the existing mix of single- to four-storey offices, warehouses and showrooms.
There has been speculation about sales, but a company spokesman, Zach Han, denied that any part of the Southbank site was for sale. Separately, another DEC project — The Verge, a 270-apartment block — was sold last October for $7.61 million to 608 Property Group.
Leasing for the DEC Southbank buildings is being handled by Lemon Baxter agent Paul O’Sullivan and Knight Frank’s Ben Hackworthy.
According to the company, DEC has postponed the development because it is waiting for better market conditions. The properties are being offered on three- to five-year leases while the company waits for "the right market."
The article highlights that even well-funded offshore developers can delay large Melbourne projects when market conditions are uncertain. DEC’s pause, the short-term leasing strategy and the sale of another project (The Verge) illustrate that development timelines and asset plans can change — a useful reminder for investors monitoring the Melbourne apartment market and developer activity.
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