A HIGHER-density project than that currently approved by a planning panel and Maribyrnong council has been flagged for the $1 billion redevelopment of the former Bradmill site in Yarraville.
Melbourne-based family business DeGroup is selling 24.3 hectares of the 26-hectare denim factory site, which has been rezoned to allow up to 1500 new dwellings in a mix of townhouses and apartment blocks of up to six storeys.
The inner-Melbourne development site could house more than 7000 new residents and is expected to sell for more than $100 million.
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Company chief Colin DeLutis said he originally intended to develop the whole project but had received a number of approaches for the site in the past five years.
“While several attractive appr- oaches have been tabled in recent years, we just didn’t feel the time was right,” he said.
“Nor was the site ready due to the need for a zoning change and an initial, smaller-scale development approval.”
The renamed Yarraville Gardens site is bounded by Francis Street, McIvor Reserve and the Newport freight railway line. CBRE’s Mark Wizel, who is marketing the site, said there was “significant scope” to increase the development’s density.
“The rarity of 60 acres of residential-zoned land six kilometres from the Melbourne CBD simply cannot be understated,” he said.
Buyers are being sought nationally and internationally, with heavy interest expected from Asian developers.
“Offshore developers and, more recently, local institutional developers are seeing the consistent population growth of Melbourne and adjusting their strategies accordingly,” Mr Wizel said.
DeGroup will retain the business-zoned land, building a 10,000-square-metre neighbourhood shopping centre anchored by Coles or Woolworths and a new 800-square-metre Yarraville library.
The sell-off could set a new record for Melbourne residential infill sites, with Mr De Lutis tipping it might eclipse the $120 million sale of the Amcor site in Alphington in June.
The Westco Jeans founder and former Carlton Football Club vice-president reportedly bought the Bradmill site from receivers in 2002 for $7 million, despite suggestions that the market value was more than $13 million.
The site was rezoned from industrial to residential and mixed-use in 2011 after approval was granted by an independent planning panel and the Maribyrnong council.
Any increase in density would require the council’s approval.
