Cygnet West Brokers sizzling Cottesloe site sale
Westbridge Funds Management has acquired a near-beachside property in Cottesloe, in a landmark $12.5 million deal brokered by leading independent commercial agency Cygnet West.
The sales price equates to a per square metre rate of $8,250, which is believed to be a record for sites with an urban residential R60 zoning in the Perth metropolitan area.
Cygnet West Commercial Agency Partner Tory Packer brokered the sale, which settled on October 6, in collaboration with Head of Commercial Agency Wayne Lawrence.
Ms Packer said interest in the property was incredibly robust, with more than 100 enquiries resulting in multiple competitive bids.
“Cottesloe is Perth’s premier beachside destination and the interest in this site was commensurate with the quality of its location and the scarcity of development opportunities nearby,” Ms Packer said.
“The property is less than 100m away from the beach and is close to some of the suburb’s most popular restaurants and cafes, underpinning its strong appeal for developers.
“Cottesloe is also one of few Perth suburbs where residential market prices support large-scale developments, even with the ongoing surges in construction costs.”
The 1,518sqm site, located at 3 Eileen Street, is currently home to a 1960s-built two-storey, 12-unit apartment development.
While rentals for the one-bedroom units are in high demand due to the premium location, Mr Lawrence said Westbridge would soon advance plans to demolish the current buildings and develop a luxury townhouse project on the site.
Mr Lawrence said Cottesloe was firmly on the radar of a significant cohort of local high-end developers, with several large-scale apartment tower proposals capturing headlines in recent months.
Those proposals, which have drawn a mixed reaction from the local community, include Edge Visionary Living’s $220 million, 12-level redevelopment of the Ocean Beach Hotel and Baltinas’ $27 million, five-storey luxury project at 122 Marine Parade.
Major apartment projects have also been proposed at 122 and 94 Marine Parade, while Andrew Forrest’s Tattarang is locked in council negotiations for a major redevelopment of the famed Indiana Tea House.
“There is a lot of activity in Cottesloe, but developers acknowledge that building a major apartment tower close to the beach is a challenging proposition as there is a lot of community interest in the area,” Mr Lawrence said.
“Developers are therefore now starting to look at townhouse-style developments at a scale more in keeping with the current character of one of Perth’s most sought-after suburbs.”