R.Corp to turn Cheltenham site into village

The South Yarra-based developer, headed by Andrew Rettig, is believed to be paying about $20 million for a vacant four-hectare site at 98-116 Cavanagh Street, Cheltenham, 20 kilometres south-east of the city. R.Corporation is reputedly planning a mix of shops, offices and apartments for the site.

Until now, R.Corporation's projects have centred on the inner city, in particular chic suburbs such as Hawthorn, East Melbourne, Richmond and St Kilda. Its biggest continuing project is in Surrey Road, South Yarra, where it is redeveloping a former council transfer station into Clara, a luxury $140 million village near the Jam Factory and Chapel Street.

Swimsuit model and designer Jodhi Meares was employed as a lifestyle collaborator for that project, which also includes a distinct vertical garden.

Mr Rettig was unavailable for comment when contacted by Capital Gain. Kelemen Commercial directors and selling agents Andrew Egan and Rudy Kelemen declined to comment.

In a sign of how much density levels have risen in Melbourne's middle suburbs, it is speculated the Cheltenham site may take a village of more than 500 dwellings, most likely configured as units and townhouses.

About 10 years ago, the vendor of the site, Cavanagh Residential Park Pty Ltd, had planned to redevelop the vacant block into a park and an over-50s community with about 150 dwellings.

Elsewhere in the immediate area, developer Hallmarc recently paid $17 million for the Highett headquarters of security transaction products company Leigh Mardon.

That purchase included a 4643-square-metre vacant tract of land, earmarked to become offices and apartments.

Woolworths is also building a $50 million-plus mixed-use development on a 1.1 ha site it acquired for about $17 million during the downturn, near the Highett railway station.

Earlier in the year, it was reported interests associated with education service provider Holmesglen paid developer Leighton Properties about $20 million for a site at 300 Bay Street, Cheltenham, which it is rumoured the school itself will eventually occupy.

Buxton the buyer

MELBOURNE-BASED developer Buxton Group has been revealed as the buyer

of a prominent St Kilda development site near the Acland Street shopping strip.

The group is believed to be paying about $7.5 million for a 1000 sq m site at the corner of Barkly and Belford streets previously occupied by the Vasiliki lobster shop and Earls Hardware. The site was sold with a permit for a $50 million, five-level tower with about 84 units but it is believed that Buxton may propose a higher-density redevelopment, a practice that is becoming common around Melbourne.

The selling agents, Beller Commercial's Fred Nucara and Andrew Fawell, and Gross Waddell's Jonathon McCormack and Michael Gross declined to comment. Buxton director Richard Buxton was unavailable.

Movement in Mentone

CHARTER Hall is set to start building a $75 million housing estate on part of Nylex's former manufacturing and distribution site in Mentone, which it has snapped up in stages over the past four years.

In a trend in which interstate builders increasingly look to Melbourne's outer suburbs for opportunity, the Sydney-based developer plans to build 119 townhouses on the 3.3-hectare site at the south-west corner of Warrigal Road and Oak Avenue.

Construction of the project, to be known as Aquilo, is set to start within weeks. Marketing of the first townhouses, priced from just under $500,000 each, starts today.

A joint venture between Charter Hall and retailer Harvey Norman bought the 11.5-hectare Mentone property in 2006, soon after Nylex announced it would shut the site. Part of the site was subsequently rezoned and subdivided to create the Aquilo development. Charter Hall bought the 3.3-hectare Aquilo site from the joint venture in December 2008.

All up, it's been reported that Charter Hall has outlaid about $10 million for the Mentone site. The property abuts a prominent bulky goods complex, which includes as tenants Bunnings, Retravision and Supercheap Auto.

Charter Hall joins a growing list of interstate developers including Mirvac, Stockland, Sunland and Walker Corporation that are building major projects in Melbourne's outer suburbs. Charter Hall is considered underweight in Victoria, relative to its New South Wales and Queensland property portfolio. In Melbourne, it controls the Home HQ complex in Nunawading and the first stage of the Lacrosse Apartments project in Docklands.

When the economic downturn took hold in late 2007, it was reported Charter Hall was in advanced negotiations to buy two prominent Melbourne sites: the South Wharf office building in Docklands, and the GTV Nine studios in Richmond. Both deals fell over.

Charter Hall did, however, proceed with plans to buy 10 Foster's properties with redevelopment potential in Abbotsford with joint-venture partner the Wyllie Group. The consortium paid $41 million for the portfolio in late 2007. Charter Hall sold its half-share to Wyllie last year for

$18.3 million.

Northcote transformed

THE future has been sewn up for another former Northcote commercial site. Prestige builder Glenvill Projects Pty Ltd is speculated to be paying about $15 million for the former Joshua Pitt leather manufacturing site, which spreads over two streets and 13,450 sq m of prime real estate in Melbourne's inner-north. Joshua Pitt was based at the 52-79 Gadd Street property for 121 years.

Glenvill is expected to redevelop the site into a major apartment complex. However, this could not be confirmed with managing director Len Warson, who was unavailable for comment. DTZ marketing agents Patrick O'Callaghan and Richard O'Callaghan declined to comment.

Elsewhere in Northcote, a 10-level apartment complex, Acacia on the Park, is under construction near the All Nations Park and Northcote Plaza shopping centre.

Ultra Tune on the road

DESPITE having a job in which driving luxury cars is a perk, Ultra Tune boss Sean Buckley doesn't want to travel for too long to get to work.

Mr Buckley will move the company's headquarters from Box Hill to Glen Iris after paying a speculated $2.5 million for a 400 sq m strata-office suite, part of Stockland's $500 million Tooronga Village redevelopment, about nine kilometres south-east of the city. Even though development at the Glen Iris site has been rampant in recent years, Stockland is only into the first redevelopment stage, of five.

The Sydney-based group this week released 4000 sq m of high-end strata-office space for sale or lease. Another 8000 sq m of retail space, and 297 apartments, are also included in the first stage.

Office suites of 64 sq m are priced from $399,000. The office component will be spread over one level, on top of a Coles supermarket and First Choice Liquor retailer. The building, at present under construction, that will house all these tenants is distinguished by pink and red windows.

Almost a year ago, Mr Buckley paid $7.01 million for an unfinished six-bedroom French provincial-style family home in ritzy Hopetoun Road, Toorak, near Ultra Tune's new offices.

Valuers have long suggested that travel time is a major factor driving the success of suburban office markets in Melbourne, Sydney and to a lesser extent in Brisbane and Perth. The decision on where to base an office is usually made by a board of directors or managers whose homes may be clustered in one direction of the CBD and who conclude that they don't need the hassle of a city commute, or to pay higher rents.

Higher density the go

TWO of south-east Melbourne's most iconic commercial properties are set to be redeveloped into higher-density apartment complexes, continuing a planning trend that is defining the early part of this century.

In South Yarra, the former Longford Cinema in Toorak Road is set to be replaced by a five-level complex, with ground-floor shops.

A suburb away, in Prahran, former commercial real estate stalwart Harvey O'Neill is involved in the redevelopment of the former Rabenault furniture emporium site, on the corner of Chapel and High streets. New York-style luxury apartments are planned.

Read Domain today for details of both redevelopments.