Melbourne developer United Asia Group has put its foot on a West Melbourne development site, setting a new land benchmark for the area.
UAG, led by Nicole Chow, snapped up the three-storey motel at 45-55 Dudley Street, paying a speculated price around $19.5 million or a per-square-metre rate of around $15,000.
Land rates in West Melbourne have been fetching around $12,000 per square metre, a rate paid by developer Bill McNee for a neighbouring Dudley Street site.
The sale of the Flagstaff City Inn, an owner-run hotel, was executed by Savills Australia agents Clinton Baxter, Benson Zhou and Jesse Radisich.
“It achieved an unprecedented land rate for West Melbourne, which is indicative of offshore developers’ desire to cater for burgeoning demand,” Mr Baxter said.
It is just across the road from Tim Gurner’s Ikebana project where all 241 apartments were pre-sold in four weeks and next door to VicLand’s 38-level tower on the corner at 420 Spencer Street. All its 438 apartments in the tower have sold out.
West Melbourne, on the city fringe, has been steadily developed over the past 15 years but the most recent deal has reached a new level.
Mr Baxter said the West Melbourne market “had sat idling” for some time but it was now moving.
Listed developer Abacus recently purchased an office furniture warehouse and showroom at 512-544 Spencer Street, and has formed a joint venture to develop the block-length site.
Closer to the CBD Chinese developer Holder East recently paid about $25 million for an 1877-square-metre car park at 496-508 La Trobe Street.
This story Administrator ready to work first appeared on Nanjing Night Net.