Kervale & Karta Group snap up Armadale development site

A prominent development site straddling Armadale and Prahran has sold for an undisclosed price to a Joint Venture between local developers Kervale and Karta Group, following a competitive campaign that drew multiple offers from Victorian and interstate buyers. 

The 1280 sqm* Orrong Corner site, at 565 Orrong Road, Armadale and 693-699 High Street, Prahran, was sold unconditionally to the Joint Venture at the conclusion of an expressions of interest campaign. 

Occupying the high-profile intersection of Orrong Road and High Street, the property has more than 72 metres of combined street frontage and sits at the junction of the tightly held Armadale and Prahran East markets. 

Sold through Hamish Burgess, Oliver Hay, Daniel Wolman and Leon Ma of Cushman & Wakefield, the site has attracted development interest amid continued demand for premium residential projects in Melbourne's inner suburbs. Architect Cera Stribley prepared an indicative mixed-use scheme comprising 40 apartments and 660 sqm* of commercial space across eight levels, with a total proposed area of 5757.6 sq m. 

Cushman & Wakefield's Hamish Burgess said the unconditional sale and depth of competition demonstrated that developers remained willing to move decisively for high-quality sites despite a more challenging development environment. 
"We received multiple offers from both local and interstate groups, with buyers recognising the difficulty of securing a substantial corner site in an established inner-Melbourne location like this. 

"The result reinforces the flight to quality we're seeing across the development market. Buyers are being disciplined, but when a flagship site with strong underlying residential fundamentals comes to market, well-capitalised developers are prepared to compete for it." 
The property currently comprises three retail shops and two residential dwellings providing holding income. The majority of the site is zoned Commercial 1, while the Orrong Road component has recently been rezoned to the Housing Choice and Transport Zone. 

Cushman & Wakefield's Leon Ma said the site's scale, corner position and surrounding amenity gave the purchasers the opportunity to deliver a premium project in a market where demand for high-quality housing remained strong. 
"Orrong Corner is an exceptional development site because it combines scale and exposure with the fundamentals developers want in the inner suburbs: established housing, strong retail and hospitality amenity, transport and proximity to some of Melbourne's most desirable residential pockets. 

"There is genuine demand for high-quality new residential product in these locations, while opportunities to deliver projects of meaningful scale are limited. The site's position at the gateway to Armadale and Prahran East gives it the potential to become a landmark project for the precinct" he said. 
The property is surrounded by established residential streets and is close to High Street Armadale, Hawksburn Village, Toorak Station, Orrong Park, Toorak Park and Victoria Gardens. 

The deal is the third major High Street development site transaction completed by Cushman & Wakefield over the past 12 months, taking the combined value of the agency's sales along the strip to more than $65 million. Previous transactions include 1216-1230 High Street and 1111 High Street in Armadale.