Lindsay Fox catches residential fever on St Kilda Road
Billionaire Lindsay Fox has caught the residential development bug, concocting an ambitious plan to replace his corporate offices on Melbourne’s St Kilda Road with a prestige apartment tower.
It is the first residential project for the trucking magnate, whose property division business grew out of his transport business and has mostly focused on developing logistics property.
Mr Fox has submitted plans for a 20-storey apartment tower on a prime site overlooking the nearby Fawkner Gardens.
The project will deliver 148 upmarket apartments across 32,000 square metres of space.
While the development value of the project has been listed as $90 million, the end value of the high-rise tower could be close to double that.
The scale of the project means plans have been submitted directly to the state’s planning authorities to consider, with planning minister Richard Wynne to have the final say.
The low-rise building at 493 St Kilda Road was bought nine years ago by Mr Fox’s Linfox Property Group.
It has since become the headquarters for the property business headed by his son Andrew Fox.
For years St Kilda Road, the broad and leafy boulevard leading into the Melbourne CBD, has been a mix of boutique mid-rise office buildings and exclusive apartment towers.
Recently the trend has swung more strongly toward residential projects in the precinct as developers step back from the runaway high-rise residential market in the CBD.
Office withdrawals for conversion to apartments along St Kilda have reduced the total office stock along the boulevard by almost 100,000 square metres in the past decade.
If Mr Fox and his son Andrew needed any encouragement for their plan, they need only look over the fence line at their neighbours at 499 St Kilda Road.
Last year boutique real estate financier Qualitas acquired the office tower next door and is now busy transforming it into a luxury $300 million apartment development targeted at downsizing empty nesters.
Further along St Kilda Road, Lindsay Fox’s good friend, property veteran Max Beck, added extra floors of residential apartments to the former Becton headquarters at 470 St Kilda Road.
Melbourne was the only city to post a house price fall in November. House prices dropped 1.3 per cent for the month, while apartment prices fell by 3.2 per cent.
However, Mr Fox may well be inoculated against any apartment oversupply by his prized St Kilda Road location.
The move into residential development also comes as Mr Fox mulls a more formal split of his $2.5 billion empire, with son Andrew expected to inherit the property holdings.
