Coventry Square apartments to be sold in one line
offering significant development potential
As published in the Australian Financial Review and The Urban Developer, RPM has brokered a prime Southbank development opportunity by bringing together a group of 20 owners of an apartment complex to collectively sell their properties to generate a higher return rather than flipping them individually.
Coventry Square is a 1,483 sqm site at 77 Coventry Street within the St Kilda Road precinct and walking distance to the Royal Botanic Gardens, Albert Park Lake, Clarendon Street café and retail precinct, South Melbourne market, Southbank arts precinct and the CBD.
The four blocks comprise a mix of owner occupiers and investors in 12 spacious two-bedroom apartments and eight three-bedroom apartments centred around a landscaped courtyard.
RPM’s development site sales agents Christian Ranieri and Ed Wright said the site is tipped to fetch around $25 million given its short and long-term options.
“It’s an extremely rare opportunity to acquire a substantial income producing residential asset with enormous upside potential,” Mr Wright said.
Mr Wright said the vendors approached him with a view to unlocking the value of the land they were sitting on by selling collectively.
“Like a lot of Southbank owners, they’re seeing the land asset they’re sitting on is very valuable.
“Future redevelopment of the site could encompass not only a residential development but boutique hotel, office or commercial development which are extremely attractive assets in the current market.
“In particular, the site’s proximity to the Sturt Street arts precinct will be very attractive to boutique hotel groups seeking to secure a foothold in the Melbourne market,” he said. “Being walking distance to attractions such as the Malthouse Theatre, Australian Centre for Contemporary Art,
NIDA Melbourne, VCA and Hamer Hall, will entice hospitality groups as an ideal boutique hotel location.
“A lot of traditional apartment developers are looking to diversify by building boutique and lifestyle hotels, tipped to be the next growth sector, either by build to hold or build and have an operator come in.”
Mr Wright said indicative rental returns on the units are in the order of $500-530 per week for the two-bedroom apartments and $630-660 per week for the three-bedroom apartments and would provide a strong holding income stream while future development approvals are being sought.
The property is being sold via a public expression of interest campaign closing 4.00pm Thursday 8th March.