Record $120 million residential land sale at former Amcor Alphington site
The sale of the former Amcor paper mill in Alphington for $120 million last weekend has been touted as the highest priced residential land sale in Melbourne’s history.
The 16.46 ha site fronting Heidelberg Road will become, according to Glenvill Homes CEO Len Warson, "a premium river-fronting community so well located and so close to the CBD.’"
His company will build a mini-suburb of high quality, medium density housing consistent with local neighbourhood character for around 3000 residents.
Colliers International handled the sale, on behalf of Amcor, to a local consortium led by Alpha Partners Pty Ltd and the Glenvill Group. Colliers International’s John Marasco, managing director of capital markets and investment services, and Peter Evans, national director of corporate solutions, led the way.
“This is the largest infill residential land sale in Melbourne’s history,” Marasco said. “Colliers International considers this the best development opportunity in Australia at present.”
Amcor announced the sale, which is subject to regulatory approvals, to the Australian Securities Exchange yesterday.
Guy Nelson, of Alpha Partners, said the site would become a sought-after residential development.
"I am very conscious of the history of the site and its significance to the local surroundings and was pleased to find a development partner such as Glenvill to help deliver what will be one of Melbourne's new premier residential addresses."
Warson said the purchase underpinned Glenvill’s strong future growth prospects. “This is a once in a lifetime opportunity to develop a new landmark,’’ he said.
About seven kilometres from the Melbourne CBD, the site abutting the Chandler Highway is handy to schools, retail precincts, hospitals and parkland. It has a Yarra River frontage of about 280 metres.
“The holding is of such a size that its availability is unprecedented and its ultimate capital value, when complete, will represent the largest inner urban mixed use/residential project in Melbourne in recent decades, other than the Docklands precinct,” Marasco said.
Amcor in 2008 announced plans to close the plant within three years. It was put on the market in 2009 and also in 2011 for a reported $200 million and ceased operations in late 2012. The company has since moved its recycling operations to a $500 million plant in Sydney, Fairfax newspapers say.
Yarra Council initially rejected Amcor’s request to change the planning controls due to concerns that this would diminish the community’s chance to have a say on future development at the site.
However, the council and Amcor have since agreed on plans that would be consistent with community expectations, and secure greater protections around building heights, heritage and the Yarra River, as well as a requirement that 5% of housing is made "affordable".
Other large former industrial sites in Melbourne – such as Edgewater (the former ammunitions factory at Footscray), Waterford Green (the former ordnance factory at Maribyrnong), the Kodak site in Coburg, and the Kew Cottages site are reportedly also being redeveloped.