According to The Sydney Morning Herald, Sterling Global is acquiring another famous property in Melbourne. It is purchasing the property from aged care builder John Matthies more than $35 million for eight adjacent properties that form a South Yarra bluff. The property has a size of 7904 square meters and this holding took Matthies five years to amass and he reportedly had to spend about $25 million for it. It covers addresses in Kensington Road and Alexandra Avenue. The site is not in the area in South Yarra that was zoned for high-rise building.
The purchase will include the 1000 square meter semi-circle Saint Cloud mansion located at 61 Kensington Road, a site that used to be the largest private land holding in South Yarra. In 2013, Matthies wanted to develop a low-rise facility for 80 residents at the site. Its target clients would have been wealthy people. The property would have been equipped with lavish amenities like a 40-seat cinema, golf simulator, wine cellar, hairdresser, and various dining rooms offering the magnificent view of the Yarra River and the Central Business Area.
It was called Alexandra on the Park at that time when the site was proposed to be developed. Sources familiar with the matter said that it could have been a higher density project. The property could be fitted with basement car parking and numerous mid-rise apartment buildings as high as six levels. Matthies picked up other older-style apartment complexes to create this supersite.
CBRE’s Mark Wizel said the property received strong responses from local and overseas buyers including aged care providers. Wizel marketed the supersite together with other agents like Josh Rutman, Lewis Tong, and Scott Orchard. In the end, Alexandra on the Park was sold to a Chinese-backed developer. Sterling Global, although financed by a foreign company, is headquartered in Melbourne’s Rialto towers.
Sterling Global secured an approval to develop a 70-storey mixed-use building at 383 LaTrobe Street. It costs $700 million to construct and it was designed by no other than Jean Nouvel. It purchased the low rise office where the Australian Federal Police Headquarters staying from Investa Office Fund for $70.7 million last 2015. Yeoh described this project as a “flagship development” for Sterling Global.
The developer is also one of the companies behind one of south-east Melbourne’s most famous infill sites, previously a quarry that was located on the opposite side of the Huntingdale Golf Course in Oakleigh South. Sterling Global currently has a project with the City of Monash council for the rezoning of the land. Once that is done, the site will be remediated and redeveloped. The site has been stagnant for more than two decades. Sterling wants the 1221-1249 Centre Road to be converted into a community that is comprised of 2500 residents. Eventually, this supersite will have a value of at least $600 million. Apart from 6-storey buildings, the Oakleigh South proposal includes a student accommodation building and serviced apartments. It would take between five and eight years to redevelop.