AFL could reap $1.3bn in sale of Etihad Stadium

CHINESE developers are circling Etihad Stadium in a deal experts say could reap the AFL a massive $1.3 billion payday.

CHINESE developers are circling Etihad Stadium in a deal experts say could reap the AFL a massive $1.3 billion payday.

Top commercial real estate firm CBRE on Thursday said three Chinese conglomerates had expressed interest in purchasing the Docklands site since Eddie McGuire unveiled his “Victoria Stadium” plan eight days ago.

“The land would be worth a minimum of $900 million and could be worth as much as $1.3 billion, depending on the desired configuration a developer sees fit,” senior CBRE director Mark Wizel told the Herald Sun.

Wizel said land in the Melbourne CBD over the past year had sold for an average of $20,000 per sqm.

“Etihad sits on 7.5 hectares — so even at half that rate the stadium would be worth $750 million.

“It really is an extremely exciting proposition because of its scale.

“Suddenly you’ve got this incredibly positioned piece of real estate that adjoins a massive train station, surrounded by development up to New Quay, Waterfront City and Harbour Town — it’s quite incredible when you think about it.”

He said the Eitihad Stadium site was one of the last prized pieces of real estate in the Melbourne CBD.

McGuire’s plan involves the sale of Etihad and construction of a new $1 billion, 60,000-seat stadium next door to the MCG in the Olympic Park precinct.

The AFL prefers a major renovation of Etihad Stadium, which it will own for just $30 in March, 2025.

Three major Chinese development firms are interested in purchasing the Docklands site.

Wizel said he had made contact with three major Chinese development firms since McGuire went public last Wednesday.

“All three of them have come back saying it is something of significant interest to our organisation,” he said.

“This is everything that a large development corporation looks for, multi-staged, mixed use and in an inner city location that is surrounded by advanced and built up transport and amenity.

“No doubt this could become the new home of a major shopping centre accompanied by a mix of residential, hotel and commercial buildings to accommodate the growing demands of residents, tourists and office space users.”

Etihad’s sizeable underground car park was a major attraction to potential developers, he said.

“One of the most significant costs and risks of any development is that of basement car parking, when you’re talking about the scale in which the car park exists at the current stadium it’s clear to see why this would be factored in as a major positive from any future developer” Wizel said

“To undertake just the car parking works that are there today could cost around $100 million, which is a cost saving passed straight to the developer not to mention the risk that this takes out of the project.

“If this proposal was being talked about five years ago it would have been quashed quickly, but Docklands had matured so much in a short time.”