Cru Collective has partnered with ASX-listed CVC Limited to pay $45 million for a 5.4 hectare site at Burleigh Waters on the Gold Coast they plan to transform into a master-planned community with an end value of $1.5 billion.
It is the second partnership between the companies, which are also developing Sur Kirra Beach – part of the new wave of luxury Gold Coast apartments.
Chris Bolger, managing director of Cru Collective, a development and construction company, said the Gold Cost market is running hot, pushing the prices of prime land to more than $20,000 per square metre.
“Honestly, 2021 was a very challenging year to acquire sites, there was such demand from Sydney and Melbourne developers coming up and looking at the boutique sites in the $5 million to $10 million range,” Mr Bolger said.
“And that’s what led us to look for these larger ones because it just got so competitive.
“It’s a big buy for us but somewhat counter-cyclical. There’s a lot of land sites being bought for $20,000 a square metre. That’s big, big money and I struggle to get those sites to work.
“Although this is a big buy, it’s $830 a metre for a site that’s got ultimate planning flexibility and a 45-metre height limit.”
Mr Bolger said planning is under way based on the assumption the site will take 1300 to 1500 apartments and 15,000 to 20,000sq m of retail and commercial space.
CVC Limited chairman Craig Treasure said: “Lake Orr is a true mixed-use infill development site and provides the potential to really shape the area for decades to come.”
The site on Lake Orr Drive was sold by the Uhl family of Germany, represented by Tony Hickey from Hickey Management, who bought it in 2007 for $26 million.
They have been active in Gold Coast real estate since the 1990s with total developments worth around $800 million including Robina Dales and the Blue C apartments in Coolangatta.
Brokered by Brendan Hogan from Colliers and CBRE’s Mark Witheriff, it had been on the market since last April with an initial price guide of $50 million to $60 million.
It’s understood to be the largest greenfield site sale on the Gold Coast in almost a decade.
Mr Bolger said while the residential sales on the Gold Coast are “very strong”, construction costs have risen by 15 per cent to 20 per cent in the past year.
“I think the Gold Coast is particularly challenging as far as [construction] cost escalation goes, but I think that will iron itself out over the next six to 12 months,” he said.
Article Source: www.afr.com
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