Beulah International accelerates into Melbourne with BMW acquisition
Melbourne, December 19, 2017 – Malaysian backed developer Beulah International has emerged as the successful purchaser of the prominent BMW Southbank site in a deal valued at more than $100 million.
International interest was received in the 6,061sqm property following an Expressions of Interest Campaign conducted by CBRE’s Melbourne City Sales team.
The 58 Southbank Boulevard site represents Beulah International’s most significant Melbourne acquisition to date. A mixed-use project is proposed, including a flagship, state-of- the-art BMW dealership.
“Our vision for the site is to create a ground-breaking concept not seen before in Australia,” Beulah Principal, Jiaheng Chan, said.
“What attracted us to the BMW site was simple. It provides an opportunity to create a landmark development that will potentially comprise of retail, hotel, residential, commercial and public space that is of a world class standard.”
BMW Australia CEO, Marc-Henrich Werner, added; “We are very excited to partner with Beulah on this development, which will showcase our latest technologies and redefine how people live and travel.”
CBRE National Director Mark Wizel negotiated the sale with colleagues Josh Rutman, Julian White and Lewis Tong following a hotly contested campaign.
Mr Wizel said BMW Australia had placed a high degree of emphasis on who they would be partnering with on the future development due to the highly strategic nature of the site, which has housed the automotive group’s inner-city dealership for well over two decades.
“Whilst many different buyers had more straightforward visions for the site, we have chosen Beulah due to their proven capabilities and commitment to innovation and exemplary design; values which closely align with that of BMW,” Mr Werner noted.
CBRE Director Josh Rutman said over 20 offers were received, highlighting the strong underlying demand for land able to accommodate high density development projects.
“We were blown away by the depth of interest in this offering,” Mr Rutman said.
“Interest was received from a range of developers with existing active projects in Melbourne, in addition to several offers from new market entrants with links to mainland China.”
The sale price represents the highest dollar value, inner metropolitan development site transaction in Melbourne for 2017.
It comes just over 12 months after fellow Malaysian developer SP Setia paid $101 million for a 4,000sqm Telstra site on Exhibition Street in Melbourne’s CBD.
“Malaysian developers have been some of the most active participants in Melbourne’s inner city, high density development projects, with active groups such as Mammoth Empire, UEM and OSK Property all currently delivering large scale, mixed use development across both the CBD and Southbank precincts,” said Lewis Tong, National Director of CBRE’s Asian Services Desk.