A PRIVATE investor stands to double the value of their two-year-old investment in a potential CBD development site after receiving planning approval to build a high-rise apartment tower.
The owner, lawyer Konfir Kabo, is expected to seek $10 million-$12 million when 36-40 La Trobe Street is put to market next week.
Mr Kabo's company, Argo, bought the 569-square-metre site for $5.06 million in mid-2010. The previous owner had paid $4.18 million in 2006.
The dramatic increase in resale value comes after Melbourne City Council approved plans for a 35-storey residential tower on the property. The Elenberg Fraser-designed building will have 243 apartments, 42 car spaces and a ground-floor restaurant.
Council planning officers recommended the permit be denied due to the building's height, projection and lack of setbacks, noting the tower represented an "overdevelopment" of the site and would have "an overbearing impact on the public realm". But the council voted 6-3 to approve the plan in February last year. The permit is set to expire if development does not begin within two years and completion within four years.
Fitzroys and Colliers International have been offering the project for sale off-market, citing interest from Asian-based and local developers.
While the listing agents declined to comment on the asking price, industry sources say that interest in the site is around the $10 million to $12 million mark.