Nearly $20m expected for city site with develop upside

28 April 2023

A West Melbourne property, currently returning more than $800,000 and with significant future development upside, is expected to fetch almost $20 million.

Exclusive agent, Commercial Bureau Director, Gideon Marcus, said the 11-17 Jeffcott Street property would suit investors with an eye to future development as student accommodation or apartments (STCA).

“This is an exceptional opportunity for investors and/or developers looking to capitalise on the enormous growth we are seeing, and will continue to see, in and around Melbourne’s CBD for both student accommodation and apartments. 

“As an investment if offers an immediate, fully leased, return of close to $800,000 from five tenants in the rapidly growing education sector, whilst the development options, subject to council approval, would obviously include student housing and apartments,’‘ Mr  Marcus said. 

The property is for private sale with an asking price of $19,988,000 representing a 4 per cent return.

Located in close proximity to the CBD Legal Precinct, Flagstaff Gardens, Royal Exhibition Building, Queen Victoria Market, Royal Melbourne Hospital, Docklands and the CBD, the property comprises a two level education facility, with a 9B certificate for 260 people, on a 468 square metre site zoned Special Use.

The ground floor includes four commercial kitchens in brand new condition, storage, reception area, dining area, and amenities, while the first floor has been expertly fitted for the requirements of a CRICOS School, with classrooms, offices and reception.

A `Massing & Yield’ study from Fender Katsalidis suggests an estimated 18 level building, with ground floor retail, basement parking and apartments, may be suitable for the site based on calculated assumptions. 

Mr Marcus said he expected the property to attract a huge amount of interest given strong Government support helping to drive the enormous demand for educational facilities and student accommodation in the CBD, as well as rising immigration and the concomitant shortage of housing.

The latest Australian Government data (Feb. 2023) shows there are more than 140,000 international students attending Victorian schools with the CBD campuses of RMIT and Melbourne University accounting for nearly 41,000 of those.

The State Government’s $53 million International Education Recovery Plan 2025 aims to reset and stimulate the sector and build on Victoria’s performance as a leader in education excellence and student experience.