Apartment towers likely for Albert Road

In the biggest deal, an Asia-based developer is believed to have paid about $15.5 million for a 2274-square-metre site at 35 Albert Road.

A 3096 sq m office building at the address is expected to be replaced with an apartment tower, which some speculate could soar higher than 30 levels and have an end value of about $130 million.

Meanwhile, across the road, boutique developer Hamton has made one of its biggest forays into the high-density residential sector.

The St Kilda Road-based developer is believed to have paid close to $15 million for a low-rise office building at 42-50 Albert Road, which was sold with a permit for a 28-level, 300-unit apartment complex. This is believed to have an estimated end value of about $120 million.

At present, the St Kilda Road precinct's highest skyscraper, the Royal Domain Tower at 368 St Kilda Road, soars 42 levels. Hamton is also developing 520 apartments in Coburg, 586 apartments in Abbotsford and about 100 apartments at its Mandalay project in Malvern.

Jones Lang LaSalle's Steven Messina is believed to be behind both Albert Road deals, but declined to comment.

The sale of 35 Albert Road continues a trend of international-based developers swooping on major residential development sites, and follows two recent CBD site sales, totalling about $51 million, to Asia-based investors, and potentially yielding projects worth more than $500 million.

An international investor also paid close to $5 million for the former St Kilda Post Office building last year, with a permit for a five-level, 40-unit serviced apartment complex.

Provincial pubs hot

ANOTHER historic hotel in provincial Victoria is on the market.

The former Shepparton Hotel, which was partly destroyed by fire in late 2007, is for private sale at $3.2 million.

The pub sits on a 2068 sq m block at the corner of Wyndham Street (the Goulburn Valley Highway) and the Midland Highway.

Frank Vinci and Joseph Carbone are marketing the Shepparton site for the owners, who were involved in running the business before the fire.

Other provincial pubs or hospitality venues to hit the market in recent months include Ballarat's Grand Hotel, Queenscliff's Vue Grand Hotel, the Mt Buffalo Chalet, and the famous Ettamogah Pub in Albury, New South Wales.

Island shopping plan

WOOLWORTHS says it is "ready and raring to go" with plans to build a new shopping centre at Phillip Island, if Planning Panels Victoria approves its project.

The new complex will be developed on the site of the Boomerang Caravan Park in Cowes's main retail strip, Thompson Avenue, and is about two blocks from the beach. Woolworths's proposal will include a 3200 sq m supermarket and 1500 sq m of specialty stores.

The caravan park closed after Easter, and cabins are being removed ahead of Woolworths taking control of the site in May.

Also in South Gippsland, the Mollers Caravan Park at Inverloch sold last year for a reported $6 million. It is expected eventually to make way for a medium or high-density apartment complex.

Last year, Hamptons Development Group won approval to subdivide the Rondor Caravan Park at Barwon Heads into 43 residential lots.

In Portsea, developer Bourkscope is building houses on a caravan park site it bought in 2007 for $2.1 million. And, in Torquay, former Richmond Football Club president Clinton Casey has built apartments and a resort, and subdivided what was the former Zeally Caravan Park. He bought the site for $12.5 million in 2003.

Retail shapes up

THE inner-city's next retail strip is slowly taking shape in Docklands.

Equiset, the development company owned and managed by the Grollo family, has filled about 1800 sq m, or six stores, at the ground level of Village Street, a thoroughfare connecting Bourke and Collins streets.

The western side of Village Street includes the 12-level A-grade office building that is now home to National Foods. The eastern side of the street is the Goods Shed building, which has been refitted into office space.

Jones Lang LaSalle is marketing the retail space at the ground level of both buildings, including the remaining four spaces, which range from

93 sq m to 256 sq m.

Merchant Street is another major Docklands retail strip.

South Yarra rising

A DISTINCTIVE Tudor-style complex in Toorak Road, South Yarra, with five ground-floor shops and an upstairs office, has sold for $6.7 million. Based on the annual rent of $296,021, the 638 sq m building sold on a low yield of 4.4 per cent.

Knight Frank's Marcus Quinn and Paul Henley sold the asset at 307-315 Toorak Road.

Mr Quinn said the property offered the new owner plenty of value-adding potential, covering just 50 per cent of the 1000 sq m land area.

Elsewhere in South Yarra, buildings of between 20 and 30 levels are becoming more prevalent, with one tower of 38 levels approved for a site on the north-west corner of Toorak Road and Chapel Street, nearby.

Toll site for sale

THE state government is continuing to offload prime development sites around freeway edges and wedges.

The latest listing, by the Victorian Department of Treasury and Finance, is at 12-62 Cook Street, Port Melbourne, abutting the

West Gate Freeway, on the city side between Todd Road and Salmon Street. The 3.1-hectare site is perhaps most recognised as being the VicRoads Westgate Training and Conference Centre.

Those with longer memories may, however, recognise the site from its previous use between 1978 and 1985, after the completion of the West Gate Bridge, as a toll facility. The site still contains the safe for storing the toll payments.

The Port Melbourne site is expected to sell for about $14 million and become

a high-profile business park possibly with a high-tech industrial component.

Elsewhere in the immediate area, the state government recently launched a registration of interest campaign to redevelop another site at Docklands between Wurundjeri Way and the Yarra River into a mixed-use village, possibly including shops, apartments, offices and a hotel.

The Department of Education and Early Childhood Development also sold a prominent 1.5 ha site at Prohasky Street, Port Melbourne, which it had previously used to store unused school portables.

That site suddenly found itself at a prominent freeway onramp, as part of recent major freeway works.

It then sold for about $3 million to a developer, who is expected to capitalise on the newfound high profile.