A company owned by the powerful Inge family has abandoned plans to develop a prime Richmond site and will take it to market after securing a planning permit.
Zig Inge, founder of the retirement living company Zig Inge Group, and his son, joint managing director Peter Inge, bought the sizeable property south of the Victoria Gardens shopping centre for $8.42 million in mid-2009. They now expect to sell it for more than $13 million after receiving a permit to build a major mixed-use project.
The 5178-square-metre site, which fronts Appleton, Doonside and David streets, will be home to 189 apartments, 19 townhouses and 850 sq m of commercial space.
Northgate Hall Pty Ltd, the Inge-controlled company listed on title records as the owner, had originally sought to build a larger complex but its plans were scaled back by the Victorian Civil and Administrative Tribunal last year following council opposition.
The property is being marketed through an expression-of-interest campaign run by CBRE's Scott Orchard and Justin Clarkson.
"The large land holding, favourable permit, scheme by renowned Melbourne architect RotheLowman, and ability to stage the project marketing and development, make a compelling story," Mr Orchard said.
Research by Charter Keck Cramer shows there is a significant amount of residential development occurring in the precinct around Victoria and Burnley streets, with more than 1470 apartments recently completed or under construction. Another 145 units are being marketed for development.
But developers who are active in the area, including Salta Properties, say demand remains strong. Salta has sold more than 70 per cent of the 500 apartments in its $250 million Green Square project. The remaining units will be released in September and the development is due to be completed by mid-2014.
A representative of the Zig Inge Group did not respond to a request for comment.