Pace Development buys St Kilda site for $17.15m

Pace Development Group has purchased a 2,146-square-metre site on Fitzroy Street in St Kilda for $17.15 million.

The purchase reflects a site rate of approximately $7,992 square metres.

Located at 173 – 191 Fitzroy Street, the six level building was the Australian Institute of Management’s headquarters for 20 years.

The Australian Institute of Management is relocating to the CBD.

The site boasts dual street frontages to Fitzroy Street and Pattison Street and offers the potential for a 10 to 12 level residential development.

The site was sold through CBRE’s Kiran Pillai and Mark Coster, in conjunction with James Kaufman and Steven Messina of Jones Lang LaSalle.

“The offering was one of the finest development opportunities put to the market in recent times,” says Pillai.

“The site allows for uninterrupted views across Albert Park Lake and the Melbourne CBD as well as sweeping views of Port Phillip Bay.

“The property achieved incredible interest with over 200 enquiries translating to 15 offers,” says Pillai.

“There has been a huge resurgence in residential activity over the last six month,” says Kaufman.

“Sales of completed apartments to privates, owner occupiers and offshore investors has gained momentum in light of favourable market conditions and falling interest rates,” says Kaufman.

Messina says international developers are currently dominating the CBD market, which is seeing competition heat up from domestic players in city fringe locations.