An extraordinarily sought-after site in Melbourne’s east at 2-4 Kingsway, Glen Waverley
, has sold after a competitive Expressions-Of-Interest campaign.
The high-profile triple fronted freehold building, bookending recently redeveloped Glen shopping centre, was sold to a local passive investor with a development agenda. Although undisclosed, the property has set a land rate for such a site locally.
The opportunity provided strong short-term income, as well as an approved DA with Council
endorsed plans for six levels of commercial space designed by acclaimed architects
The managing agent Ray White Commercial Glen Waverley’s Director Ryan Trickey negotiated the deal in conjunction with JLL’s Josh Rutman, generating interest from local, interstate, and international investors, owner occupiers and developers.
Mr Trickey said, “Developers in this area are benefiting from strong council planning; it is
creating a vibrant and sustainable entertainment precinct, unseen in other areas and the complex campaign shined a light on one of the most strategic opportunities in the region.”
“The building is within the Glen Waverley Activity Centre, a growing cluster of leisure,
entertainment and residential offerings that in some respects creates its own ecosystem.
Being situated opposite Glen Shopping Centre was also advantageous, particularly after the recent circa $600 million redevelopment,” he said.
Mr Rutman said, “The development site market remains fluid, with developers altering permits and changing potential uses of sites, given market uncertainty and ongoing challenges to certain sectors.
Recent examples of this trend include Queens Boulevard (50-52 Queens Rd), The Jam
Factory (500 Chapel St) and 600 Collins Street.”
“Despite development activity heavily impacted throughout 2020, Melbourne’s strong
fundamentals including population, employment and GDP growth are recovering strong. This is providing increased confidence for developers and investors and is fueling a strong demand for new development opportunities in Melbourne.”
“The property attracted a high level of interest from Asian backed investors looking to hold and develop the property in the long run. Many offshore investors, in particular Chinese are keen to acquire passive investment assets with future development potential in the long run and the sale of 2 Kingsway reinforces the appetite for such assets,” Mr Rutman said.
The competition amongst parties was strong, with 12 offers received during the campaign from a variety of different buyers. The three rounds of EOIs resulted in four major players meeting the required level.
“The rarity of land with the benefit of holding income in the heart of Glen Waverley was what
made this campaign such a success,” Mr Trickey said.
“It was challenging to negotiate the deal with a short-term lease in place as there was a balance between passive investors and dynamic appetites. The agency teams worked hard to really target the marketing and work with buyers to assist them in making sure of the bottom line,” Mr Trickey said.
“COVID-19 has added an extra layer of complexity to these processes and negotiations, so we are thrilled that we could deliver this result for all parties.”
Ray White Commercial Glen Waverley
0400 380 438
Ray White Group
0448 841 606