- The Hagen family sold the 3,600 sqm site
- Deal has been two years in the making
- Comes as the Toorak Village precinct continues to grow
The site of a Mercedes Benz dealership at Carters Ave, Toorak has been acquired by Orchard Piper for $67 million from the Hagen family.
The landholding, which has been pieced together since 1932, consolidates the 3,600 sqm site at 7-11A and 17-19 Carters Avenue.
The deal has been two years in the making, under an expression of interest campaign involving direct negotiations between the Hagen family and Orchard Piper.
The deal has been struck on two-year settlement terms, adding to Orchard Piper’s $28 million acqusiion of a 1,400 sqm parcel of land at the corner of Toorak and Mathoura Road.
Upon completion, the site is expected to be home to over $150 million worth of luxury apartments, office and shops.
The Carters Ave site takes Orchard Piper’s holdings in the Toorak Village to over 5,000 sqm, with a price tag of $95 million and end values over $550 million across both projects.
Luke McKie and Rick Gronow, Orchard Piper directors, said their relationships with the premium markets in Melbourne, along with intimate understanding of the land and vendor, had allowed the duo to develop the prestigious strip.
“Having a close and trusting relationship with the Hagen family allowed us to shape this deal to suit the vendors, they were interested in a high quality outcome for the site, given their longstanding ownership and history,” said Mr Gronow.
“We have great respect and admiration for the long-standing partnership John Worrell and Karl Hagen shared. The Worrell family began piecing this land together in 1932, following World War I, which eventuated in this un-repeatable parcel on the doorstep of Toorak Village.”
Rick Gronow, Orchard Piper
Earmarked as a Key Development Site under the Stonnington Council’s planning scheme, Orchard Piper is aiming to transform the $400 million precinct through ‘super-premium’ residential offerings along with numerous lifestyle amenities, high-end retail and commercial suites.
“As with our plans for the corner Mathoura and Toorak Road corner, the architectural response to this site should reflect the significance of its location. We’ve been actively involved in the area for over thirteen years, having developed six previous projects within minutes of this site,” said Mr McKie.
“It is now widely acknowledged that Toorak Village is coming into a new era. This combined with our two new sites and Stonnington Council’s recent street art and furniture investment will ensure the Village lifts to new heights.”
The site received over 14 bids in excess of $700 million of capital looking into the future of Toorak Village, argubabaly the most esteemed suburb in Australia.
“Given the site’s substantial footprint within the very heart of Melbourne’s most prestigious suburb, it marked a truly once in a lifetime opportunity for the variety of significant development outcomes it offered, said Allard Shelton Director, Joseph Walton.
“The sale process was hotly contested, with the expressions of Interest campaign generating in-excess of 200 genuine buyer enquiries and, more importantly, a total of 14 offers from local, interstate and international parties.”
CBRE director Nathan Mufale added “The sale highlights the attractiveness of Toorak as Melbourne’s most luxurious suburb, with the suburb recording the state’s highest median house price of $5.5 million.”
“This represents a 12 per cent increase in the past twelve months, as the suburb absorbed $1 billion in luxury residential home sales in 2021.”
The acquisition takes Orchard Piper’s development pipeline to over $1.1 billion in Melbourne. Designs are set to be unveiled in 2023, with construction to commence the following year when Mercedes’ lease ends.