Telstra has sold it's dual frontage block at 308 Exhibition Street in Melbourne's CBD to a Malaysian development company.
A Melbourne CBD site slated for residential development has sold for over $100 million. The dual frontage block at 308 Exhibition Street has been sold by Telstra in a sale arranged by Mark Wizel and Josh Rutman of CBRE Melbourne.
The purchaser is Malaysian development company, SP Setia, a publicly listed property, infrastructure and business company founded in 1974 by Tan Sri Liew Kee Sin. With a presence in Vietnam, Singapore, Australia, China and more recently the United Kingdom, the group is already well known in Melbourne through their Fulton Lane development – two towers of 45 and 28-storeys comprising 780 residential apartments, parking for 300 cars and retail space.
Telstra originally had plans for the development of an $800 million, 90,000 sqm office tower to house their many staff currently distributed in a number of offices throughout the Melbourne CBD, but the plans were shelved mid 2015. The new owner has unveiled plans for a $640 million twin residential/retail twin tower development of 800 units in a show of faith in the Melbourne CBD residential property market. This is despite the talk of it being over supplied and despite the shadow cast by new planning minister, Richard Wynne, with his more stringent planning parameters. Certainly, according to Melbourne mayor, Robert Doyle, the $101 million price tag is “a great vote of confidence in the Melbourne property market.”