Buyers to battle for portion of West End project

23 February 2022

Purchasers are expected to compete strongly for the rare opportunity to acquire a brand new building in a prime city fringe location when a new listing hits the market in West Melbourne.

221 Rosslyn Street, West Melbourne is a serviced apartment property on a single title, comprising a collection of brand-new purpose-built accommodation. It is part of the recently completed West End precinct and is being brought to market via International Expressions of Interest by Colliers’ Daniel Wolman, Oliver Hay and Anthony Kirwan alongside Paul Jones, Tim Spargo and Sam Guest of Jones Real Estate. Agents anticipate the property will achieve a sale price in excess of $45million.

A new concept of inner urban hospitality, 221 Rosslyn Street was designed by CHT Architects with interiors by Bruce Henderson Architects and features 99 fully self-contained studio, one and two bedroom apartments with high quality finishes to 4.5 star standard; a large ground floor restaurant (over two retail tenancies) positioned to the corner of Rosslyn and Adderley Streets; a rooftop bar; and 27 basement car parks. The serviced apartment hotel and carparks are all on the one title.

“221 Rosslyn Street presents purchasers with an extremely rare opportunity to acquire a brand-new building in a prime city fringe location fully furnished including OSE to 4.5 star standard,” Colliers’ Daniel Wolman said. “Significant tax depreciation benefits and the high quality of rooms, sizes, fit outs, parking and amenities further add to the appeal of the offering to build-to-rent ventures.

“The projection continues to grow for build-to-rent and co-living models as a prominent player amongst the suite of mainstream commercial property asset classes in Australia.”

The building benefits from access to several of the wider West End amenities including a 25m lap swimming pool, plunge pool and spa including private gardens with BBQ facilities in addition to a full line Anytime Fitness Centre, Foodworks, Cellarbrations, Medical Centre and various cafes and restaurants. 221 Rosslyn Street sits on a prominent corner fronting Rosslyn and Adderley Streets.

“The highly flexible property is also suitable for investors for use as a hotel or serviced apartments, with rooms averaging 39sqm each with a terrace or balcony,” Paul Jones, of Paul Jones Real Estate, said. “With the imminent opening of Australia’s international borders to tourists, we expect a huge influx of demand for hotels and serviced apartments, as buoyant predictions persist for hotel occupancy rates to reach pre-COVID levels.”

Expressions of interest to operate the serviced apartment hotel have already been received from international and local operators including one of the world’s premier operator’s, IHG, for its Staybridge brand.

The property is being marketed with vacant possession but with a strong interest from local and international operators.

The stratum freehold offered for sale forms part of Trenerry Property Group’s luxurious master planned mixed use development – West End. Completed in March 2021, the $345million development was completed as a joint venture with partners Victor Smorgon Group and the Kanat Family.

Situated on the north western edge of the Melbourne CBD, West End comprises five buildings incorporating a spread of high-quality residential apartments, retail and commercial spaces in addition to the serviced apartment property offering.

The same consortium consisting of Trenerry Property Group, Victor Smorgon Group and Kanat Family are also redeveloping various projects including The Hotel Continental in Sorrento, which will include a 108 room Intercontinental Hotel, Spa and Bathhouse including pools and gyms, and state of the art hospitality venue including restaurants operated by the celebrated Scott Pickett Group of Longrain, Chancery Lane and Matilda’s.

“West End forms part of a steadily growing footprint of developments in this inner-city fringe location, with eminent developers Gurner, Vicland, Deague Group and UAG tapping in on the opportunity of the West Melbourne location,” Mr Wolman said. “The underlying blueprint of The West Melbourne Structure Plan 2018 is a driving force behind the gentrification of West Melbourne, formerly a predominantly industrial precinct.

“Upgrades to North Melbourne Station, forthcoming Arden Railway Station, proximity to Flagstaff Gardens and the $150million Queen Victoria Market redevelopment, along with the proposed redevelopment of Festival Hall by Hillsong and nearby Marvel Stadium, further add to the appeal of West Melbourne.”