Grocon wants $60 million plus for former CUB brewery, Melbourne landholdings

Grocon is selling two of three remaining landholdings in the Melbourne CBD’s former CUB site, expecting $60 million plus for the 6,600 square metre in total offerings.

Forming part of the Swanston Square development, between Queensbridge and Bouverie Streets, they’re about to enter an Expressions of Interest campaign to be offered internationally next week by CBRE Melbourne City Sales’ Mark Wizel, Josh Rutman and Tom Tuxworth.

On the former brewery site includes two residential developments, with 800 apartments under construction.

Grocon’s chief executive Carolyn Viney said that they have decided to test the market with a sale campaign, due to the potential for both of the sites for high density development.

“Recent site sales in and around the Melbourne CBD have achieved strong values and these landholdings have the benefit of being strategically located between RMIT and Melbourne University, as well as in close proximity to the attractions of the CBD and Carlton,” said Viney.

“We have another five development projects underway in various stages of delivery in Melbourne, as well as the $1.1bn Victorian Comprehensive Cancer Centre in Parkville, so we're well represented in the Melbourne market,” she said.

The land is in two titles, and can be offered individually, with interest expected from offshore and local groups. The Expressions of Interest campaign for the sites will close in mid- to late-September 2014.

Wizel said that interest is coming from Malaysian, Singaporean and mainland Chinese developers for Melbourne sites like this.

“These groups recognise the strong sustained performance of the Melbourne residential market and interestingly in recent times it has been groups that have already built in Melbourne that are being more aggressive than those first time groups looking to break into the market,” Wizel said.

“Since mid-2011, Asian developers have acquired circa $1.8 billion in Melbourne sites and there is no sign of any slowing in interest. More recently we have seen the emergence of new groups such as Hiap Hoe, UEM, ICD, Aspial and Fragrance Group, who have all secured land holdings for both immediate and medium term development.”