Market Insights


Hengyi to deliver high end product to $17m Mt Eliza site

Melbourne-based developer, Hengyi, has paid Peninsula Health and Victoria’s Department of Health and Human Services $17 million for one of the largest individual landholdings on the Mornington Peninsula.

Known as the Beachleigh Estate, the 33 Jacksons Road, Mount Eliza property, comprises an elevated 3.41 hectare site over two titles overlooking Canadian Bay. Zoned General Residential the site has 198 metres Jacksons Road frontage and 200 metres foreshore frontage.

According to CBRE’s Mark Wizel, Lewis Tong, Bianca Butterworth and Ashley McIntyre who managed the Expressions of Interest campaign, the price represented a record for the Mornington Peninsula with a land rate in excess of $495 a square metre.

“This was an exceptional result both for the vendor and ultimately the purchaser which reflected the incomparable attributes of one of Victoria’s most sought after and prestigious bayside localities.

“The international marketing campaign drew a predictably strong response with nearly 100 enquiries and seven genuine expressions of interest despite some obvious challenges around future uses,’’ Mr Wizel said.

Ms Butterworth said enquiries included those from both local and offshore developers, hotel and leisure operators and high net worth individuals for a variety of development outcomes from residential to education and aged care/ retirement living.

Hengyi General Manager, Simon Manley, said he was delighted to have the opportunity to create something special on an exceptional site.

“We are acutely aware of the rather unique aspect of the location on the Golden Mile and its heritage status. There are few sites quite like this one and we want to make sure that our development is both sensitive and respectful of its surroundings and the environment.

“We dont have a set idea at the moment, and of course we will need to work with zoning and site restrictions, but we are excited about delivering a very special, high end, product to the local community,’’ Mr Manley said.

He said while Hengyi would like to get something off the ground as soon as possible the emphasis would be on getting it right.

The property was initially developed from the late nineteenth century as the private residence Beachleigh, later becoming home to the Orthopaedic Branch of the Royal Children’s Hospital, before being used for aged care and, more recently, administrative purposes. 

Ms Butterworth said while an initial sale campaign had been conducted in 2017, improved development outcomes and greater certainty in relation to the site’s potential had sparked renewed investor and developer interest.

“Our advice that Beachleigh had the potential for residential, aged & health care, education and retirement living, subject to the relevant planning approvals, along with the flexible General Residential Zoning, was well received by interested parties,’’ Ms Butterworth said.

Ms McIntyre said improved access to Mornington Peninsula via the $759 million Peninsula Link project had also been a consideration.

She said the property was located close to several other properties recently transacted by CBRE, including Moondah Estate, which sold to Ryman Healthcare for $37.5 million and Morningstar Estate – a circa 63.23 hectare property which transacted for over $36 million.

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