Permit for 35 storeys lifts return to $3.1m
The owner, lawyer and private investor Konfir Kabo, has sold the La Trobe Street property for $8.5 million after buying it for $5.33 million (including stamp duty) less than three years ago.
The 59 per cent spike in value has come courtesy of the controversial decision to grant a permit for a 35-storey residential tower on the property.
Designed by Ellenberg Fraser, the complex will feature 243 apartments, 42 car spaces and a ground-floor restaurant and has an end value estimated at $100 million.
But the sale price is believed to be less than MrKabo was seeking, with the 5690-square-metre site at 36-40 La Trobe Street originally put to market with an asking price of $10 million to $12 million.
Agents in conjunction, Fitzroys and Colliers International declined to comment on the identity of the purchaser, who is believed to be an "active" Melbourne-based developer.
"There had been a huge level of offshore interest registered in the property, particularly from Chinese and Malaysian developers, however in the end a local developer was the successful buyer," said Fitzroys agent Charles Emmett.
Council planning officers had recommended the permit be denied because it represented an "overdevelopment" of the site but they were over-ruled in a council vote.
Frequently Asked Questions about this Article…
The council's stamp of planning approval added more than $3.1 million to the sale price of the La Trobe Street development site, contributing to a 59% increase in value between purchase and sale.
The owner, lawyer and private investor Konfir Kabo, sold the La Trobe Street property for $8.5 million after buying it less than three years earlier for $5.33 million (including stamp duty).
A permit was granted for a 35‑storey residential tower designed by Ellenberg Fraser. The proposal includes 243 apartments, 42 car spaces and a ground‑floor restaurant, with the completed development's end value estimated at about $100 million.
No. The sale price of $8.5 million is believed to be less than the seller was seeking; the 5,690‑square‑metre site was originally marketed with an asking price of $10 million to $12 million.
The agents in conjunction were Fitzroys and Colliers International. They declined to comment on the buyer's identity; the purchaser is believed to be an 'active' Melbourne‑based developer.
Yes. Agents reported a huge level of offshore interest, particularly from Chinese and Malaysian developers, although the successful buyer was ultimately local.
Council planning officers had recommended the permit be denied on the grounds that the proposal represented an 'overdevelopment' of the site, but that recommendation was overruled in a council vote.
This case shows how council planning approvals can materially lift a site's value and that development potential often drives investor interest. At the same time, approvals can be controversial and carry planning risk, so investors should monitor council decisions, proposed project details and market interest when assessing development‑site opportunities.
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