An owner-occupier has snapped up part of NEC’s Mulgrave premises amidst the growing dominance of this buyer group in Melbourne’s metropolitan investment market.
Colliers International’s Rob Joyes and Sasan Misaghian have sold 649-655 Springvale Road in the tightly held Mulgrave commercial precinct for $14.1million. The property was purchased by an existing Mulgrave-based owner-occupier.
649-655 Springvale Road was a 48,600sqm site containing a 19,286sqm industrial facility made up of three interconnected buildings. Mr Joyes said the site attracted keen interest, with the sales campaign generating more than 100 enquiries and 12 formal expressions of interest.
Potential purchasers were drawn to the expansive exposure to Springvale Road and sought-after location just 20km south-east of the Melbourne CBD. The surrounding area comprises a mixture of commercial and industrial development. “Owner-occupiers have been flexing their muscles in the metropolitan investment market, with low interest rates encouraging people to make the move from leasing to owner-occupying their own property,” Mr Joyes said.
Colliers International has recorded close to $80 million in industrial sales in Melbourne’s east in the last 12 months, with $43.5 million being vacant possession sales. Recent sales have included:
• 130-140 Merrindale Drive, Croydon: Sold to Studco for $9.5million
• 207 Colchester Road, Kilsyth: Sold to Decon for $5.75million
• 1663 Centre Road, Springvale: Sold to Chenco Foods for $4.61million
• 274 Ferntree Gully Road, Notting Hill: Sold to Carpet Court for $4million
• 3 Corporate Avenue, Rowville: Sold to an undisclosed owner-occupier for $2.5million
• 81 Norcal Road, Nunawading: Sold to Ocean King for $3.15 million
“We are experiencing the highest level of industrial vacancy in the east in the past few years and, with limited options for sale in this market, this has led to outstanding sales results,” Mr Misaghian said. NEC chose to sell its Mulgrave premises, which also included 633 Springvale Road and 54 Dunlop Road, in order to relocate to a Melbourne CBD or Docklands location.
The move was driven by NEC’s business transformation from a product-based technology supplier to a provider of ICT solutions and services. The company is looking for a new head office with a requirement of approximately 6,500sq m of office space. Combined, the properties had a total site area of 7.267ha and total building area of 27,000sqm.