Malaysian-born Melbourne-based private investor Jimmy Goh is selling three prime CBD development sites that may nearly double his initial A$47 million investment.
Mr Goh, formerly from Klang, Selangor bought the sites in Mackenzie, La Trobe and Franklin streets, in the northern end of the city, for a combined total of $47,425,000 between 2008 and 2012.
Their sale, by Colliers International and CBRE, is expected to fetch up to $80 million, The Age newspaper reports.
The Australian Financial Review says the 1,548 square metre site in Franklin Street is expected to fetch more than $16 million, the 2,030 square metre McKenzie Street development site could go for more than $20 million and the jewel in the Goh crown – the La Trobe Street property, opposite Melbourne Central — has an asking price in the region of $40 million.
”It’s such a large offering it might attract new offshore developers to Melbourne,” property lawyer Lim Eu Ming, formerly of Malaysia, told the Age newspaper . ”It’s seldom that you get three development sites in one hit.”
Jimmy Goh, is the son of the late Goh Swee Chow, an astute developer and investor who read the property market in Malaysia and Australia with rich results.
The newspaper said a dwindling supply of prime sites in Melbourne’s central business district and strong interest from big offshore, mainly Asian, developers has fuelled a rapid rise in city land prices.
Most of the city’s largest high-rise projects are being built and sold by Asian developers including Malaysia’s SP Setia which has multi-million dollar apartment developments underway .
About 25,500 units are expected to be completed in the metro area by the end of next year, but some property observers have warned of a potential for an oversupply of apartments.
Asian developers have filled a gap in the market in Melbourne after Australia’s banks tightened finance restrictions on local developers following the global financial crisis.
Victorian State Planning Minister Matthew Guy has approved 50 residential towers since the Liberal Party coming to office in 2010. And it is not only offshore interests benefiting from the boom. Melbourne developer and publisher Morry Schwartz bought a site next to Goh’s Mackenzie Street property in 2008 for $10.5 million. Two years later it sold with a permit to Malaysian developer Chip Eng Seng for A$20.2 million. – BERNAMA