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671 Chapel Street to sell in excess of $52M

02/03/2020

Melbourne-based private investor Harry Goles is bringing the development site at 671 Chapel Street in South Yarra to market, with an expected price guide of in excess of $52m.

Cushman & Wakefield’s Marcus Neill and Lukas Byrns have been exclusively appointed to sell the trophy site via an international expression of interest campaign. The sale is expected to attract strong interest from a variety of developers operating in the iconic high-end residential, luxury hotel and A-grade office sectors.

The open and expansive 2,070 sqm site is the last remaining pure development opportunity in the Forrest Hill Precinct in South Yarra. Abutting Melbourne High School, any development would benefit from protected and uninterrupted views of the CBD as well as stunning 360-degree views across Melbourne’s parklands and outer suburbs.

671 Chapel Street is located close to landmark buildings including, The Como Centre, Capitol Grand, The Olsen Hotel and 627 Chapel Street. It is also one of only a few development sites brought to market in the past 2 years within the densely populated suburb of South Yarra.

The most relevant development site sale in the area was Goldfield’s purchase of 627 Chapel Street from boutique developer Fridcorp for $50m in January 2018. Since this sale, Goldfields has commenced construction of a 24,000 sqm 24-storey commercial office tower which is experiencing strong demand from corporate tenants seeking space within the development.

The property is located approximately 4 kilometres from Melbourne’s CBD at the ‘Manhattan’ end of South Yarra, just 650 metres from the South Yarra Train Station. The site also enjoys close proximity to the river, the finest walking tracks and Melbourne sportingprecinct. South Yarra was voted Melbourne’s most liveable suburb in the Domain Liveable Melbourne Study by Deloitte Access Economics due to its entertainment, transport infrastructure, employment levels and general amenity – all of which 671 Chapel Street is exposed to.

Cushman & Wakefield’s Marcus Neill, Director, Middle Markets, said: “The property located at 671 Chapel Street is a truly rare opportunity to secure a prominently located development site, in Melbourne’s tightly held CBD fringe markets. Due to its pre-eminent location, a potential development can benefit from uninterrupted views through to the CBD and proximity to transport infrastructure.”

“Development sites in Melbourne’s inner-city suburbs are in high demand with only a handful being traded in recent
years. In South Yarra in particular, the population is expected to continue to rapidly grow supporting demand for both residential and commercial office space. This is expected to drive heightened interest from local and international parties vying for Forrest Hill Precinct’s last remaining development site.”

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