BY MARC PALLISCO, SYDNEY MORNING HERALD
Following two valuable windfalls, JTX International has flipped an Ivanhoe development site for a speculated $25 million – three times the price it paid mid-last year.
It is selling the site to local apartment developer Blue Earth Group, directed by Michael Dib.
JTX bought the former Courtney and Patterson car yard at 37-67 Bell Street when it was zoned Heidelberg – a suburb where the median two-bedroom unit price is $583,000, according to Domain Group Data.
It was recently reclassified Ivanhoe, where property values are higher (two-bedroom apartments here have been averaging $615,000, according to Domain).
While the suburb rezoning was taking place, JTX was also boosting the value of the site, by replacing proposed apartment redevelopment plans which came with the site, with something substantially more sizeable.
When JTX settled on its $8.3 million for the property, it came with development plans – not a permit – for a five-level building.
In October JTX lodged and was later approved to replace the 8285 square metre site at the south-west corner of Linden Street with what was reported as Ivanhoe’s largest mixed-use project.
The permit was approved after an earlier application by JTX did not proceed for a 16-storey complex with 224 apartments, 151 aged care dwellings and a 156-room hotel.
CBRE’s Scott Orchard, Julian White and Mark Wizel marketed the Bell Street property for JTX, which has offices in Thornbury and Shanghai.
It is trading to Blue Earth Group which last year, following an off-market deal, paid $15.4 million for a Brunswick West property at 1-5 Olive York Way, which has since been replaced with an apartment building.
In 2015, Blue Earth Group paid $12 million for a former Nissan car yard in Keilor Road, Essendon North, with the intention of also replacing the block with flats.
The Ivanhoe deal comes two months since the JTX offloaded a 31 hectare Craigieburn plot for a speculated $12 million. It obtained another landmark permit for that 650-700 Hume Highway block which it bought from VicRoads for $8.25 million in 2011. The proposal, Humex, included high density apartments, a four-star hotel and homemaker centre.
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