Landmark Tarneit site set to fetch $25-30m

A 64-hectare farm once known as Shanahans House, and later Wyndham Park is expected to sell for about $25-$30 million, sources say, and attract interest from "local, national and international residential developers".

Jones Lang LaSalle said two forthcoming infrastructure projects including a new Tarneit train station, and the Outer Metropolitan Ring Road will contribute to the council's ambitions to boost Tarneit's population by more than 21,000 by 2020.

"The Tarneit [train] line will ensure the future population west and north of Werribee will be within five kilometres of a railway line instead of around 10 kilometres, which will significantly improve the local amenity," said JLL director Dominic Gibson, who is marketing the site with Matthieu Lucas.

He said last month's extension of the Urban Growth Boundary would place the 1070 Sayers Road property at the centre of the next development stage of the Wyndham area.

Housing estates have been advancing towards the site in recent years, with major developers in the area including Devine, Peet & Co and Stockland.

In April, Central Equity known for building high-rise inner-city apartments paid a reported $24 million for 20.5 hectares in Point Cook, another first home buyer enclave south of Tarneit.

Months later, Queensland-based Pask Group paid about $31 million for a 24-hectare Point Cook development site.

Last week, the state government announced it would expand the urban growth boundary by some 45,000 hectares, incorporating Green Wedge land, mostly in Melbourne's north and west.

That move is expected to make way for a new wave of commercial and residential development.

CORRECTION: One Green Wedge will not be redeveloped into a swag of shops, offices, factories and residences, as was incorrectly suggested last weekend.

The City of Kingston tells Capital Gain that community-based initiatives including market gardens, and projects revolving around recreation and a chain of parks will be the focus of the 2071 hectares of land between Bentleigh East and Springvale South. A shared trail is planned for cyclists, pedestrians and equestrians.

Council has allocated an initial $1 million, increasing to a possible $6.9 million over the next five years, to fund the Green Wedge projects. There will be a 20 per cent rate rebate for agricultural land.

Teeing off

ANOTHER month and another campaign to sell golf course investment has teed off.

This time, in Melbourne's east, administrators for the Letten Scheme are selling two golf courses, known as The Heritage Golf & Country Club, and spread over two suburbs: Chirnside Park and Bend of Islands.

Golf club members have a lease over the course assets, while Mirvac Hotels has managed the conference facilities, retreat, spa and resort facilities since 2002.

The asset is expected to arouse buyer interest from high-net-worth individuals, through to syndicates, or even the club's own members.

Sources speculate the combined assets should sell for between $12 million and $15 million.

Last month it was reported in this column that China-based investors and developers paid about $7 million for the St Andrew's Beach Golf Course and resort on the Mornington Peninsula.

It's also believed Asia-based developers are in advanced negotiations to buy Doncaster's outgoing Eastern Golf Course site, in Doncaster Road, for about $100 million.

Yuppies ahoy!

IN ANOTHER sign yuppies are replacing the student and working class-base that once defined Parkville and Carlton culture, the Naughton's Hotel building is being offered for lease, targeting high-end tenants that can reposition the pub as a fancy restaurant.

Ending speculation that the iconic Royal Parade pub would be rebuilt as student accommodation as have many other drinking holes in the area Alexander Robertson leasing agent Stephen Byrne instead said the building's owner was seeking a long-term operator.

Coincidentally, Mr Byrne's family operated Naughton's for about 25 years. The building was last reported as selling to a private investor for $3.2 million in March 2006. Acting for that investor now, Mr Byrne says the Naughton's offering gives an operator the opportunity to reposition the building as a high-end gastro-pub-style restaurant, to cater for the area's growing number of well-heeled residents.

Parkville, although largely occupied by the university, the Melbourne Zoo, stadiums and parkland, has in recent years attracted a growing number of new residents in various major apartment projects around The Avenue, the CityLink motorway, and the site of the 2006 Commonwealth Games Olympic Village.

Royal Parade, like St Kilda Road, has a higher-density culture relative to other parts of Melbourne but no substantial, or memorable diverse ground-floor retail base.

The value and potential rent of homes have increased substantially in the past 25 years, despite the recent economic downturn and boost in apartment supply.

The Naughton's Hotel building is being offered at a starting annual rent of $250,000. Predating the Young & Jackson Hotel and the Hotel Windsor, Naughton's was a popular watering hole for university students and Carlton Football Club supporters when that club's home games were played at Princes Park.

Road worthy

VICROADS has reaped $2.57 million from the sale of a vacant 1.3-hectare property in Melbourne's outer north. The Industrial 1-zoned property, with an 183-metre frontage to Mahoneys Road, in Thomastown, sold to an owner occupier.

Knight Frank's Anthony Cementon and Martin Bourke said the high-profile development site was close to the Hume Highway and Metropolitan Ring Road.

Pole position

MACQUARIE Office Trust is about to test drive the performance of the commercial property market, listing for sale an office investment overlooking the challenging Schumacher and Piquet bends of the F1 Albert Park racetrack.

It was just three years ago, but towards the peak of the commercial property market, that MOT paid $26.26 million for the 11-level, 8400 sq m B-grade office previously known as the Zurich building.

Now known as SMEC House, 71 Queens Road is expected to sell this time for about $24 million, reflecting a yield of about 9 per cent based on the asset's annual income of just over $2.2 million.

If this sale price is achieved, it would suggest the value of investment grade assets are recovering slowly.

Given the size of 71 Queens Road, and the length of its office leases, the asset offers no medium-term residential redevelopment opportunity.

However, Macquarie Real Estate Capital is part of a consortium developing a 12-level, 91-unit apartment complex, Proximity, next door, at 70 Queens Road, replacing the historic Avalon mansion.

Plans are also in motion, sources say, to redevelop the former Suntory restaurant site at 74 Queens Road into a major apartment complex.

Jones Lang LaSalle and Colliers International are marketing 71 Queens Road.

Shop-a-holic

COLONIAL First State is selling a suburban shopping strip next door to its massive Forest Hill Chase Shopping Centre, in Melbourne's east.

The 23 shops, configured predominantly as single-storey buildings, are leased to a total of 26 tenants including ANZ, H&R Block and Taco Bill.

The shops will be sold separately, and are expected to sell on yields of between 3 and 4 per cent, according to Gross Waddell selling agent Tim Darcy.

The portfolio includes a three-level former cinema at 63-67 Mahoneys Road. Given that rentals start at $14,800 per annum, Mr Darcy is expecting the portfolio to attract interest from budget-buying mum-and-dad private investors.

Colonial First State acquired the strip of shops, at the corner of Mahoneys and Canterbury roads, when it acquired the major shopping complex for $214.5 million in late 2004.

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