Frankston eyesore reborn as Peninsula on the Bay holiday apartments
A former ungainly Frankston waterfront complex will launch in April as luxury residential and serviced apartments following completion of the Peninsula on the Bay by developer the Asian Pacific Group.
The redevelopment of one of Victoria’s best located, but least attractive coastal buildings is expected to capitalise on investment in tourism and business in the area as well as further help rejuvenate the Frankston area which is tipped as a hotspot for property investors.
The redeveloped 10-storey Nepean Highway complex features 65 residential apartments with 86 serviced apartments (managed by Quest), and a ground floor serviced office complex.
Most apartments will have sea and CBD views.
Its main selling point will be its proximity to the beach and commanding views over Port Phillip Bay, the Mornington Peninsula and Melbourne's CBD.
Sale of apartments at Peninsula on the Bay will be through Quest Properties, with the prices expected to be between $250,000 and $350,000.
Quest is offering investors a 25-year lease with a secured 6.2% to 6.7% rental return fixed for the first two years and then increasing by 4% per annum under the lease.
The building, which had been long vacant and had a number of previous uses including as offices, a nightclub and leisure centre, was once referred to by comedian Barry Humphries as "the world’s ugliest building".
A number proposals for use of the site have come before the Frankston Council but failed to come to fruition before the development proposal from the Asian Pacific Group.
Frankston TV produced a video last year to show the state of the building prior to development, its proximity to the beach and location.
The redevelopment of the Peninsula Centre into a residential, commercial, retail and restaurant hub is expected to attract a series of established retail outlets as well as a restaurant to be run by popular Australian restaurateur Paul Mathis.
Property information provider Residex reported strong capital growth in the Frankston property market with an 18% increase in house prices, and a 19.5% increase in unit prices over the past three years.
The development will benefit from Frankston’s transformation into urban waterfront destination, with plans in progress for a local marina as well as the soon to be opened Peninsula Link highway upgrade, which will cut down travel time from Frankston to the CBD.
Will Deague, CEO of Asian Pacific Group, has been quick to downplay the reputation of Frankston, often touted as a problem area due to its lower-income socioeconomic demographic.
“I spent the whole weekend down there on-site and that beach is as good as anywhere.
“It’s got a lot going for it. I think it’s just a matter of time for Frankston,” he says.
