GreenFort Capital Snaps Up Melbourne High-rise Site For $35m

Alternative real estate investment manager GreenFort Capital has paid about $35 million for an approved high-rise development site close to Melbourne’s Queen Victoria Market.

GreenFort Capital was founded recently by Adam Vaggelas, the former head of real estate investment at ASX-listed Blue Sky Alternative Investments and a former senior executive at Morgan Stanley.

He quit Blue Sky in January, where he was instrumental in developing Blue Sky’s student accommodation business after securing a $1.5 billion mandate with Goldman Sachs, to set up GreenFort.

The fund manager has now snapped up 478-488 Elizabeth Street, a 1172 square metre land holding that could make way for a new student accommodation building or a hotel.

The site was offloaded by Girdhari and Geeta Lamba, who amalgamated two sites - the first acquired 30 years ago - and submitted plans a few years ago for a 52-storey building with almost 400 apartments and close to 200 hotel rooms.

Earlier this month, the site received approval from the Victorian Minister for Planning for a development of 30,644 square metres in gross floor area.

Mr Vaggelas said the purchase of the Elizabeth Street site aligned well with the company’s investment approach.

“The underlying fundamentals of the Melbourne real estate market remain strong and opportunities to secure a permit-approved site of this nature in the CBD are rare,” he said.

"We're considering our options for the site, including student accommodation, hotel and retail uses."

"Melbourne has been named the world's most liveable city again this year, and both domestic and offshore migration to the capital continues unabated. Its status as Australia's largest and fastest growing international student market is also a great benefit."

CBRE Melbourne City Sales agents Josh Rutman, Mark Wizel and lewis Tong handled the transaction on behalf of the Lamba family.

"Developers are clearly recognising that there is very little land left for genuine development in Melbourne, and this dwindling supply is seeing prices rise to new heights," said Mr Rutman.

“Melbourne has become a truly international city, opening up the possibilities for different product to be delivered such as hotel, student accommodation.”

The site is currently occupied by two low-rise office and retails building leased to tenants that include Education Access Australia and retailer Motorcycle City.

Larry Schlesinger
Published on September 13, 2017