More ‘super sites’ on the way as neighbours cash in

A deal to sell a Melbourne “super site” that saw a group of neighbours join forces to sell eight residential blocks as one is only days away from being completed, and already there are more sites on the way.

In a trend that continues to grow in popularity, five owners at Eaglemont in the city’s east pooled their properties to create a mega block that has already caught the eye of developers.

The properties, which were split into two blocks but may be sold as one, are expected to fetch around $22 million.

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And CRS Property’s Ross Mercorillo, who is marketing the sites with Lou Montalti, says there’s more owners waiting in the wings as neighbours get wise to the price premiums that are being achieved by selling as a collective.

“We’re currently working on another one at the moment that is slightly bigger than this (Eaglemont site) and involves nine owners and 10 blocks in the inner east,” Mercorillo says.

Basically they saw an opportunity and they said, ‘Let’s go for it’.

“It’s a developing trend at the moment. We’ve certainly been contacted by many owners recently where they’d like to combine their sites to create a bigger mass.”

The site on the corner of Banksia St and Lower Heidelberg Rd.

“People do realise that they can achieve anywhere between 30 and 40% more than if they sold the property individually.”

“Basically they saw an opportunity and they said, ‘Let’s go for it’.”

The more than 3600sqm Eaglemont site was offered as two parcels, with the tender process ending last week for one, and on August 17 for the other, though Mercorillo says they may still be sold together.

It’s a developing trend at the moment

“For the whole site we’ve been quoting around $22 million.”

“We need to now wait to see what offers we get on that as well, just to determine whether we sell it separately or as a whole.”

Mercorillo says residential developers have been the most interested potential buyers for the site, which sits on the corner of Lower Heidelberg Rd and Banksia St.

“They’ve all been residential developers. We’ve had a few aged care facilities also consider the site. They’re still doing their feasibility study at the moment, but mainly it’s been high-end residential developers looking at it.”