Chinese Developers trading out
A larger number of Development sites are the hitting the market with many Chinese backed development groups leading the charge to the exit doors.
The latest to have traded is Golden Age who have offloaded their 85 Spring Street Melbourne development for $114M to US-headquartered Proprium Capital, which was spun out of Morgan Stanley in 2013.
Golden Age acquired the site in Jan 2017 for $75M from Grocon which had an appoval The project at 85 Spring Street has approval for about 225 apartments after Grocon trimmed a 44-level proposal to 39 levels and reduced the number of apartments in order to secure approval. Golden Age relaunched the project as a $400m mixed use scheme with 138 apartments and a $200m, 26-storey hotel fronting Little Collins Street.
Golden Age then partnered with Starwood who intended to take the management of the Hotel in the Scheme, however as the apartment market has dried up, the pair have sold the project to Proprium who will likely retain the existing 10,700sq m Spring Street building.
Proprium Capital were on the hunt for new opportunities following their sale last year of 72 Christie Street, St Leonards to Singaporean company UOL for $154m.
Also in Melbourne, developer Woodlink has also scrapped plans for a $360 million residential development on St Kilda Road and is now putting the existing building, which is now 85% vacant, on the market. Woodlink acquired the site in late 2015.
Other Chinese backed developers trading out are Jin Lian Group whose receivers sold a 7,843sqm site in Carlingford, Sydney for $21.5M. The site has an approval for 120 apartments but failed to attract sufficient pre-sale interest before creditors demanded their capital back.
Also in Carlingford Yi Fang Group is selling a development-approved site in Carlingford in Sydney's north for about $20 million. The 5820sq m site has an approval for 118 apartments across three buildings.
Location Map: 85 Spring Street, Melbourne