Oz Property Group recently agreed to the sale of its 1 Ascot Vale Road, Flemington site for $16.5m to a local developer
THE former Racecourse Hotel site in Flemington has sold for $16.5 million to a Melbourne developer.
Abbotsford-based Caydon Property Group bought the 3773sq m site at 1 Ascot Vale Rd from Oz Property Group.
CBRE City Sales, which managed the sale, dubbed it the strongest non-CBD sale in the past two years.
A permit for ground floor retail, 300 residential and 87 serviced apartments has been granted, but Caydon Property Group principal Joe Russo said he expected to make changes.
“Caydon’s in-house design team will be looking at the plans and permit in place and we expect to make a few changes to ensure we have the best possible design for our buyers,” Mr Russo said.
Changes would need to be submitted to Moonee Valley Council.
Mr Russo said the company aimed to buy sites close to the CBD, and was also carrying out projects in Brunswick East, Heidelberg, Hawthorn and St Kilda.
Marketing for 1 Ascot Vale Rd apartments is expected to start in October.
In 2010, a permit was granted for 219 dwellings and amended earlier this year to increase the number of one-bedroom apartments.
Oz Property Group director Raghav Goel said the drawn out planning process for the site was the “bulk of the reason” they decided to sell.
Mr Goel said they purchased it for $7.6 million and, while it had been an expensive process dealing with the council and the Victorian Civil Administrative Tribunal, they found a good financial outcome in selling.
“The project is still a good project and viable, but our focus (has moved) to manage the hotels and medium density developments,” he said.
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