Desolate apartment site in Wheelers Hill could go up for sale

BUYERS of a long-awaited apartment block in Melbourne’s east will be offered refunds as the developer struggles to come up with the money to start the $50m project.

P07wgmarket: An artist's impression of Wheelers View

UNCERTAINTY surrounds the future of the Wheelers View apartment development in Jells Rd.

People who have already bought into the 131-apartment project will be offered their deposits back or invited to hold out to see if a new developer will take on the project.

Buyers are due to soon receive letters from site owner Nidal Ammache, advising the 8106sq m site, opposite the Wheelers Hill Hotel and the Monash Gallery of Art, could be again offered for sale.

Buyers have paid deposits on about 60 of the 131 apartments, Mr Ammache, of Ammache Architects, said.

The desolate site on the corner of Jells and Ferntree Gully roads, once home to a Mobil petrol station and car wash, has been undeveloped for more than a decade, despite various planned projects.

In 2004 Monash Council refused a planning application on the site for the development of The Peak, a nine-storey building of 111 apartments, five townhouses and a basement carpark.

The sales office sits closed on the vacant site. Picture: Lawrence Pinder

Two years later a retirement village was earmarked for the site, with the council twice granting extensions.

In 2010 the council issued the permit for the Wheelers View development, which included four separate buildings up to four-storeys. The council has extended the permit three times, and building must start by September 21.

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Mr Ammache said he considered the site — one of the highest points in metropolitan Melbourne — an excellent development opportunity, but was having trouble securing funds to start the $50 million project.

“It has been a very frustrating process,” he said.

“I have two options — finding a partner to go ahead or selling the site to another developer. All deposits are in trust accounts and anybody who wants to exit will get their money back.

“I will be fair with buyers.”

Many of the buyers were semi-retired and lived in the area who wanted to downsize from large family homes, Mr Ammache said. Most of the apartments cost about $500,000.

Monash Mayor Stefani Perri said she hoped any change in developers would not impact negatively on buyers.

If work has not started by September, Mr Ammache could either apply for another extension or simply allow the permit to lapse.

Listings for the “luxurious” apartments with “panoramic views” remained on some property websites last week.