Capital Gain
It’s probably the biggest transaction ever haggled over at the Thomastown Trash and Treasure Market. A developer has snapped up the largest part of the site for more than $15 million.
The days of traipsing between tables of junk and old tools could be numbered with the buyer understood to be a joint venture between two developers with experience in large format retail and office-warehouse projects.
The 2.49 hectare piece of land is at 26 Wood Street, alongside another two smaller parcels at 261 and 267-273 Settlement Road, which remain on the market.
Records show the vendor is Middendorp Electrical Co. The site has two short-term tenants, and returns $155,224 a year in rent.
GrayJohnson agent Matt Hoath, who negotiated the deal with CBRE’s Daniel Eramo, said the two-round campaign drew widespread interest from a diverse pool of buyers, including owner-occupiers, institutional developers – and even offshore interest, including a significant bid from a Chinese buyer wanting to secure the entire estate.
“While the smaller, more unsophisticated end of the market is currently showing some nervousness due to financing constraints, wealthy private buyers and corporate developers are making moves. They recognise it is a strategic time to buy high-quality, well-located land,” Hoath said.
“When everyone else in the media is talking doom and gloom, this campaign proved the exact opposite. Buyers are steering away from smaller man-cave style developments, which have fallen out of favour, and are heavily focusing on prime industrial assets that support long-term business growth.”
Kealba
Ryman Healthcare’s Melbourne expansion plan has shrunk again with the $30.85 million off-market sale of its Kealba site in the north-western suburbs.
The price is shrinking too. In 2022, Ryman paid $38.5 million for the 6.07 hectare former high school at 27 Driscolls Road and announced plans for a $155 million integrated aged care complex.
Ryman, which is dual listed on the Australian and New Zealand share markets, was on a buying spree in the early 2020s with plans to roll out seven more centres to add to its existing seven. The strategy has been trimmed to five sites, including Essendon and the former Daisy’s hotel and nursery in East Ringwood.
Ryman started construction on the Ringwood site in 2022 when it halted the work with no explanation. A former defence clothing factory on Gaffney Street, Coburg is for sale.
Ryman told Capital Gain it is keeping sites “with the strongest potential for future development” but selling those which “may deliver greater value for shareholders through divestment”.
Last year the developer completed the Nellie Melba Village in Wheelers Hill and is now at the final stage of the Hubert Opperman Village in Mulgrave.
The buyer of the Kealba property is understood to be another ASX-listed property developer with plans to dump the retirement project and master-plan a new townhouse estate.
Cushman & Wakefield’s Hamish Burgess and Joe Kairouz did the deal.
Ocean Grove
A new retail centre in the outer suburbs of Ocean Grove has sold down for $21.8 million and an average yield of 5.37 per cent.
It was a solid result for the new centre on Activity Drive, behind the Kingston Village shopping centre, which was completed last year by developer Leading Edge. The biggest transaction was the 7-Eleven servo at No.12-14, which was bought by a Sydney investor for $8.55 million on a 5.88 per cent yield.
A Hungry Jacks outlet fetched $4.65 million on a sharp 4.85 per cent yield and The Reject Shop was snapped up for $3.45 million on a 5.42 per cent yield.
Stonebridge’s Kevin Tong and Rorey James did the deals along with CRS Commercial’s Myles Snow and Lou Montalti. “We were pleased to secure bids on all assets through our Asia Practice, particularly given the regional location,” Tong said.
Tivoli
Buyer advocate Frank Valentic has snapped up a block of flats for $5.11 million in a key South Yarra location.
The three-storey block at 65 Tivoli Road attracted six offers from a mixed group of bidders including investors, developers and owner-occupiers. The 12 apartments are on a 619 sq m block off Toorak Road. Records show they last changed hands in 2012 for $3.85 million.
Valentic has had a long-running business buying up blocks of flats on behalf of buyer syndicates and the Tivoli Road acquisition makes number 342.
“We saw an opportunity to improve the asset through a refurbishment program, while also increasing cash flow and long-term returns,” Mr Valentic said. The transaction was handled by Cushman & Wakefield’s Hamish Burgess, Joe Kairouz and Leon Ma.
Still in the City of Stonnington, the team, including Oliver Hay, has a development site at 693-699 High Street on the corner of Orrong Road.
The 1280 square metre parcel of land includes a house and three shops. It last changed hands in 2024 for $4.68 million but did not settle until February this year.
Frankston
Land bankers are expected to make a play for a Frankston super site on 2198 sq m at 439-447 Nepean Highway and 82-88 Wells Street. The triple-fronted site is in the Frankston Activity Centre which allows for future developments of up to 12 storeys or 41 metres.
It is surrounded by several recently approved projects of more than 14 levels, including the 94-unit Harbour, by Urban DC and Pace’s Solene, which has 144 apartments. Construction is underway at both.
The four buildings are leased to 10 separate tenancies and return $542,381 a year in rent. Fitzroys’ Chris Kombi, Tom Fisher and Ben Liu are marketing the site and expecting more than $7 million.
Childcare
A portfolio of childcare centres has hit the market carrying a total price tag of around $35 million. The centres, located in Preston, Bundoora, Point Cook and Melton, have long-term leases to Nino Early Learning, Kids Academy and Papilio.
Records show the Preston creche at 365 Bell Street was bought by Di Dio Holdings in 2017 for $11 million. The late Angelo Di Dio, who died in 2023, once farmed huge swathes of land in the western suburbs that were later sold to residential developers.
The Melton centre at 7 Reserve Road was sold by the developer, the Agosta family’s Bamfa Properties, to the Di Dio family for $7 million in 2023. The portfolio generates a combined income of more than $2.39 million a year and has an average lease expiry of more than 11.5 years.
Colliers’ Luke Soccio and Tim McIntosh are running the expressions of interest campaign.
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Disclaimer : This story is auto aggregated by a computer programme and has not been created or edited by DOWNTHENEWS. Publisher: www.smh.com.au
