Arguably metropolitan Melbourne’s best landbank and development opportunity, prominently located on Doncaster Hill, is available for sale via an Expressions of Interest campaign closing Wednesday, 13 April at 2pm. The site is located on the doorstep of Westfield Doncaster, in one of Melbourne’s fastest growing and most affluent eastern suburbs.
Fitzroys’ David Bourke, Shawn Luo and Paul Burns, in conjunction with Colliers’ Peter Bremner and Hamish Burgess, are marketing 2 Frederick Street Doncaster on behalf of an entity linked to the ASX-listed tenant Hansen Technologies.
Expectations are in the mid-$20 millions range.
The 7,550sqm mega-site boasts dual frontages and comprises a three-level 3,707sqm office/data centre building. It is fully leased on a five-year term until 31 December 2024 with no further options, returning $770,273 per annum.
The property is located in the Doncaster Hill Major Activity Centre, which as part of Plan Melbourne seeks to accommodate housing and population growth and encourages intensive development as a focus for housing, business, shopping, working, leisure, transport and community facilities.
“This is one of the best landbank and development opportunities in Melbourne,” Burns said.
“We expect this one to be hotly pursued. It’s one of the last major sites to be developed in Doncaster Hill, which is one of metropolitan Melbourne’s highest points. Developers have what is an increasingly rare chance to capture stunning views to the Melbourne CBD as well as Box Hill, Port Phillip Bay, the Dandenong Ranges and Macedon Ranges, in a highly-connected location at the doorstep of Westfield Doncaster.
“The purchaser will earn a reliable cash flow from an ASX-listed tenant while assessing the development options encouraged in the Major Activity Centre zoning.” Hansen Technologies is a global provider of software and services to the energy, water and communications industries, servicing more than 600 customers in over 80 countries.
Bourke said prudent developers have competed strongly for recent offerings in the area.
“This is a proven location for demand of the end product, high quality apartments. Doncaster Hill’s population has already increased by over 500% since 2011, and it’s expected to increase by 235% from 4,800 residents in 2019 to 11,300 by 2036, demanding 5,500 dwellings.
“The Doncaster apartment market is exceptionally mature. Its unique offering of significant local amenity headlined by Westfield Doncaster, spectacular views, and high connectivity to public and private transport all contribute to its ability to absorb and support ongoing demand for quality apartment accommodation.
“Middle-ring locations with quality lifestyle attributes have proven particularly popular with Melburnians as flexible working arrangements become commonplace.”
The immediate vicinity has hosted a number of successful developments including Nest at the Hill (253 apartments), Panorama (209 apartments), Magnolia (181 apartments), The Point (174 apartments), The Pinnacle (158 apartments) and Garden Hill (136 apartments), and the recently opened Mercure Melbourne Doncaster.
“With a strong median house price that has increased by over 18% in the past 12 months the demand for apartments in this location will remain strong as the gap between established houses and apartments continues to broaden,” Bremner said.
The property is moments from Doncaster Road and multiple bus routes, and close to the Eastern Freeway.
“The property is set to be future-proofed by the future Suburban Rail Loop and major expansion of Westfield Doncaster in the coming years,” Burgess said.
“Doncaster Hill will be huge beneficiary of the Suburban Rail Loop, which will connect the precinct to every major rail line and Melbourne Airport in a city-shaping project that will enhance the future livability, productivity and connectivity of Melbourne.”
Westfield Doncaster is set to grow by up to one-third in size. An additional 43,000sqm of retail floor space and 18,000sqm of commercial office space will be introduced at Westfield Doncaster, as well as an enhanced and expanded bus interchange, nearly 2,800 new car parking spaces for a total of 7,575, and new bicycle facilities.