Developer dumps plan for Richmond
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.
InvestSMART FORUM: Come and meet the team
We're loading up the van and going on tour from April to June, with events on the NSW central & north coast, the QLD mid-north coast and in Perth, Adelaide, Melbourne, Sydney and Canberra. Come and meet the team and take home simple strategies that you can use to build an investment portfolio to weather any storm. Book your spot here.
Want access to our latest research and new buy ideas?
Start a free 15 day trial and gain access to our research, recommendations and market-beating model portfolios.Sign up for free