Beijing-based developer Holder East has snapped up a vacant King Street block for $6.02 million before it sold at auction, to add to a development site next door.
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The deal negotiated by Colliers International's Oliver Hay, Daniel Wolman, Matt Stagg and David Sia saw the Chinese group buy the corner site from local developer Vaughan Constructions. Thomson Geer Lawyers' Eu Ming Lim acted for Holder East.
Holder East purchased an adjoining site at 511-525 King Street in 2014 for $10.05 million at a land rate of $5100 per square metre.
The new site at 501-509 transacted a week before the auction at a rate of $6400 per sq m.
Mr Wolman said Holder East intended to develop both blocks.
Holder East recently sold a site it owned at 97 Franklin Street to accommodation provider Scape Student Living for $56 million.
The 2000 sq m block had plans for a 62-storey apartment tower, which Scape intends to modify with a proposal for up to 800 student studios, typically one-bedroom, self-contained units.
Holder East's West Melbourne development sites are opposite the small suburban Eades Place Park.
Interest from Chinese buyers remained strong and was expected to continue next year, Mr Hay said.
