Developer puts in tall order for South Yarra site

The Victorian Civil and Administrative Tribunal approved the demolition of South Yarra's historic Capitol Bakeries building in mid-2009.

It was earmarked to be replaced with a mixed-use project, The Capitol, South Yarra, identified by a $150 million, 38-level, 133-metre-high curved residential tower and a shopping centre and office building at the north-west corner of Toorak Road and Chapel Street.

The controversial project looked likely to be the most prominent suburban legacy of the previous government's "pro high-density" Melbourne 2030 policy, which new Planning Minister Matthew Guy has described as dead and buried.

But the owners of the site are hoping to revive the policy's spirit, seeking to increase the main tower's height to 151 metres.

The new, 43-level proposal, drafted late last year and to be reviewed by VCAT next month, includes 226 apartments as opposed to the previous proposal's 211 units.

Combined with the shopping centre and office, the project's end value will be more than $300 million, according to sources.

The site is widely recognised by the street address of 257 Toorak Road and is owned by Sydney-based Freedom Furniture founders Julian Tertini and Peter Palan, and the APN Property Group Development Fund Number 1.

Bates Smart architect Roger Poole said the design of the additional levels was consistent with the approved building envelope and "will continue the sculptural architectural language of the building".

The developer expects to demolish the Capitol Bakeries building this year. It said demand for its new apartments had been strong, and it was anticipating project completion in stages from 2013.

It hosed down speculation it would try to sell the site.

Meanwhile, nearby, Sydney-based developer Stockland has been seeking more than $20 million, sources say, for a residential development site in Yarra Street. Stockland is applying through VCAT to boost the number of levels within that project from 27 to 35.

One of Mr Guy's first official acts as Planning Minister late last year was to overturn Brumby government planning laws facilitating high-density residential developments near all public transport.

The Baillieu government has instead identified specific sites close to the CBD for high-density redevelopment, including Fishermans Bend, the 20-hectare E-Gate site on Footscray Road, and parcels around the Richmond railway station.

It also foreshadowed audits, restructuring and amendments to the urban growth boundary.

School's out

ONE such site the Baillieu government may be eyeing off for high-density redevelopment is controlled by the Department of Industry Innovation and Regional Development, and is close to being rezoned from Public Use.

The huge Kangan Batman Institute of TAFE site, at 70 Gwynne Street, between the Richmond and East Richmond railway stations, is expected to be rezoned Business 3 later this year, after an application by the department.

It wants the 8500-square-metre site rezoned to enable its future sale and redevelopment for a purpose other than education. Despite a booming population in the inner-eastern and south-eastern suburbs, the department has declared the Richmond land surplus to its needs.

With frontage to Balmain, Kelso and Cubitt streets, the site contains rundown industrial buildings and

open-air car parks.

Proposed planning amendment documentation suggests low-density redevelopment, consistent with the low-rise offices and factories in the immediate area, known as Cremorne, and near Melbourne's stadium precinct.

But with much larger proposals earmarked for sites in "suburban" parts of Richmond (like Lend Lease's redevelopment of Channel Nine's former Bendigo Street studios), any subsequent owner of the Cremorne site, which is surrounded by factories, may try their luck with something higher density.

Agent sources estimate the Gwynne Street site could fetch more than $25 million as a development site in the current market. This estimate assumes a flexible zoning allowing construction higher than the 15-metre limit, proposed as part of the department's rezoning application.

Skye high

IS FRANKSTON expanding to the east, or is Cranbourne growing westwards?

Regardless, the suburb that divides the outskirts of both these commercial hubs, Skye, is likely to have continued residential redevelopment for the foreseeable future and farmers are rubbing their hands with delight.

A 200-hectare dairy farm at 320 Wedge Road, on the south-east corner of Taylors Road, has hit the market with an asking price of $21 million.

The farm is adjacent to the Sandhurst housing estate, which includes two 18-hole golf courses and lakes. LJ Hooker Frankston's Michael Pearce believes the farm could yield 1000 lots, assuming the parcel becomes part of the urban growth boundary, which is under review by the Victorian government.

It is expected that a $400 million housing estate, possibly with a commercial component, could be developed on the Skye farm.

Skye, on the south-eastern outskirts, is set to benefit from the controversial $759 million Peninsula Link freeway, due to open in 2013, and running down past Frankston to the Mornington Peninsula.

It is also within close proximity to the major commercial hub of Dandenong, often dubbed Melbourne's second city.

$10,000 . . . a metre

A RECORD price is believed to have been paid for corporate space in South Yarra.

Developer Michael Yates has reaped a little more than $5 million from the sale of a 510-square-metre strata office on the 15th level of his 9 Yarra Street complex.

The office occupies the north-west corner of the tower, facing the city, and its sale price translates to a rate per square metre of $10,000 a record, according to First National Real Estate director Patrick O'Callaghan.

He said office occupants were increasingly migrating to South Yarra out of established commercial centres such as the city and St Kilda Road because "people don't want to be stranded in a commercial tower or a suburban office park with no infrastructure, no life around them".

Nine Yarra Street is an 88-suite strata office complex, which is three-quarters sold out, according to Mr O'Callaghan.

Brethren upgrade

RELIGIOUS group the Exclusive Brethren is on track to quit Melbourne's northern suburbs and base itself more permanently around Diamond Creek.

The Exclusive Brethren has listed for sale the second of two prominent Glenroy sites it used as a campus for its multi-campus Glenvale school.

The site, at 8 Lytton Street, near the Pascoe Vale retail strip, measures 880 square metres and will be sold with a permit for townhouses. Barry Plant is representing the Exclusive Brethren.

Late last year, the Exclusive Brethren sold another school campus, nearby, at 163-165 Glenroy Road, which included a church and open-air car park.

The Exclusive Brethren has outgrown its existing huge headquarters, wedged behind factories, in Walter Street, Glenroy, and is building a new mega-church on the site of two farmlets at 352-374 Diamond Creek Road.

Title records show that the Exclusive Brethren's outgoing Walter Street hall was transferred to a new owner last April. Its Diamond Creek church is under construction despite concerns from eastern-suburbs residents regarding its capacity (2000 people), and worship hours, starting at 6am on weekends, and ending at 9pm on weekdays.

The secretive nature of the organisation has proven contentious for church neighbours in recent years. The church engages 24-hour security as well as iron gates, security guards and sensor lights at its main hall in Glenroy.

The new Diamond Creek centre will be used for Bible teachings, prayer meetings and gospel preaching.

Across town, another religious group, the Church of Scientology, is opening its new Ascot Vale headquarters tonight.

The church sold its long-time CBD headquarters to property developer David Marriner for $8.5 million last May. Mr Marriner has since proposed a 25-level glass hotel for the site, on the corner of Exhibition and Little Collins streets.

Synagogue site on sale

THE site of Melbourne's first synagogue, in Bourke Street, has hit the market as a development opportunity. Read Sunday Domain for details.