A local developer has purchased a development site with plans for a mixed use/apartment and retail project, at Hawthorn on Melbourne’s leafy inner eastern fringe following a highly competitive Expressions of Interest campaign.

According to Savills Clinton Baxter, who brokered the deal with Nick Peden and Jesse Radisich, the 2-4 Roche Street property sold for a very strong $9 million – close to $7,500 a square metre – well in excess of expectations of circa $8 million.

Mr Baxter said the property had been extremely popular with a huge number of prospective buyers with offers received from local and Asia-based developers, with the price reflecting the intense competition for a development opportunity in one of Melbourne’s most highly regarded residential and lifestyle pockets.

“The sale is a demonstration of the voracious appetite of developers seeking to secure sites suitable for boutique apartment projects in the leafy inner eastern suburbs. They are particularly seeking to develop projects suitable for owner-occupiers and empty-nesters,” Mr Baxter said.

Zoned Commercial 1, the 1,209 square metre corner site has extensive street frontages providing design flexibility and protected views towards the CBD.

The property is situated within the West Hawthorn retail village with direct proximity to Hawthorn railway station and Burwood Road and Power Street trams.

Mr Peden said the property was sold subject to monthly leases to two tenants, who occupy the two double storey buildings, at a current annual rental of $105,000, with vacant possession available on 60 days’ notice.

He said plans for a proposed redevelopment of the property included 54 apartments, retail on the ground floor, 67 basement car spaces and 54 storage cages.

The vendor was a Melbourne based investor.

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