VicUrban Pays $7 Million For Cheltenham Site

STATE government arm VicUrban has paid a speculated $7 million for a major development site in bayside Melbourne – and strategically aligned itself to acquire a much bigger site, next door.

The 15,000-square-metre site VicUrban has just purchased at 329 Bay Street, Cheltenham, houses a building where fighter planes were manufactured in the Second World War.

The new site abuts a unique CSIRO facility that stretches almost the full distance between Bay Street and Highett Road. In recent years it’s been speculated that this massive site will be vacated, and rebuilt as housing, with VicUrban always touted as a possible developer.

It’s expected VicUrban will demolish buildings on the 329 Bay Street site, and redevelop the property as a large commercial and residential village.

Nichols Crowder director Matt Nichols marketed the property but declined to comment on any part of a deal when contacted by Capital Gain.

Late last year the Kingston City Council paid $22 million for the prominent office it rented, at 1230 Nepean Highway, Cheltenham. It has subsequently snared tour bus operator Australian Pacific Touring as an office tenant for 3200 square metres, paying a reported annual rent of $200 a square metre.

by Marc Pallisco – March 2011

Source Links:
RealEstateSource and  TheAge-Big Bay Buy

Please note:
The site bought by VicUrban directly abuts the Highett Grassy Woodland site!

View the location of the VicUban site via a Google Map on the [ Where-is-it? ] page