Grocon train arrives in Arden for metro-driven renewal
Backed by Singapore’s sovereign wealth fund GIC, local developer Grocon has taken its first step into an emerging urban renewal zone in Melbourne’s inner-north, putting its foot on a luxury car dealership site.
The North Melbourne site, one of first privately-held holdings of scale to hit the market in the Arden urban renewal precinct, could eventually become home to a mixed-use development of $1 billion or more.
Grocon, led by property scion Daniel Grollo, is understood to be in due diligence on two adjacent landholdings that constitute the Nick Theodossi Prestige Cars dealership, a 1.5-hectare site known as Arden Central.
A deal could be struck in the range of $135 million, according to market sources, and the development could range from residential and student accommodation to retail and office space.
If completed as expected, the deal will be the second inner-city Melbourne site taken into the growing partnership between Grocon and the powerful Singaporean investor.
The pair are understood to have recently completed the acquisition of the Coles Richmond Plaza site in the inner east for about $50 million. They are expected to pursue a build-to-rent strategy for the site, along with a retail component.
Grocon has been facing pressure on the corporate front after putting two of its subsidiaries into voluntary administration in October. It was in the middle of a court battle with Dexus over a $28 million lease claim relating to a Brisbane project when it called in the administrators.
The foray into North Melbourne is significant – it is the first move by a big developer to secure a position around a new station in the Arden precinct, which is being built as part of the $11 billion Melbourne Metro Tunnel project.
“Since the Metro Tunnel project started, I have had numerous approaches concerning my adjacent landholdings,” Mr Theodossi said in June.
He had brought in Colliers International’s John Marasco, Trent Hobart, Rob Papaleo, Oliver Hay and Jozef Dickinson to run a process for the properties.
“We can’t comment on the deal, but can confirm the portfolio of properties around the entry to the new North Melbourne train station known as Arden Central is in exclusive due diligence,” Mr Hobart said.
“The demand for land adjoining or above Melbourne’s rail network is extraordinary from both developers and capital partners.
“There is no doubt the government infrastructure investment is driving demand in inner-city Melbourne. This Arden precinct alone is planned to include a minimum of 15,000 residents and 34,000 workers.”
