This article is from the Australian Property Journal archive
ABOUT $45 million is expected for nearly 1.5 hectares of land in Melbourne’s eastern suburbs, which is being offered for sale with approval for five mid-rise buildings with apartments, offices and retail.
The 615 Warrigal Road property in Ashwood last traded in late 2016 for almost $36 million, when major seafood supplier Oceanic Australia put its long-held headquarters up for sale with a short-term leaseback, and leases to multiple other retailers. The purchaser was Chinese developer Hong Se Australia Corporation, which also trades as Panorama Investment Group, and which was going through an acquisitive period of buying middle-ring development sites.
The three existing office and warehouse buildings at the Ashwood property total 7,937 sqm, and there are 150 car parking spaces. Currently leased to four tenants, with ideal lease expiries for development by February 2024, the total passing income is about $420,734.
The permit-approved Peddle Thorp designed development has a total gross floor area of over 87,000 sqm across five different towers of up to 10 levels, comprising residential apartments and townhouses, offices, serviced apartments, and retail.
Mixed use zoning allows flexibility for an alternate proposal such as build-to-rent.
The site offers direct access to the Holmesglen train station via a bridge and stands directly opposite Holmesglen TAFE, which has over 11,000 enrolments. Monash University is a 10-minute drive away and Deakin University six minutes away. It is also opposite Malvern Valley Public Golf Course, creating exception view potential, and adjoins Gardiners Creek trail, providing a bike path directly to the Melbourne CBD.
Julian White, Chao Zhang and Andrew Milligan of Stonebridge Property Group have the listing with Leon Ma, Marcus Neill, Oliver Hay, and Daniel Wolman of Cushman & Wakefield.
“The scale of the site at approximately 1.5 hectares, plus the added benefit of a significant planning outcome, make this a highly rare offering in the market,” White said.
“The permit approval will give confidence to buyers on the scale of development and the zone provides the ultimate flexibility for variations of use to suit each individual developer’s use and mandate.”
He added the proximity adjoining a train station would be seen highly favourably by developer.
Ashwood has a population of over 200,000 people, with more than 90% of the housing being occupied private dwellings. Almost 69% is separate houses, and 31% being apartments, semi-attached or townhouses, and almost 40% this is three bedrooms and 30% four bedrooms.
Ma said demand for mixed-use developments is “soaring as residents and investors alike recognise the unparalleled benefits of a vibrant, integrated community”.
“With its strategic location, diverse zoning, and proximity to major educational institutions, retail hubs, and recreational facilities, this site presents an exceptional canvas for creating modern, sustainable, and thriving mixed-use spaces that cater to the evolving needs of the community” he said.
The expressions of interest campaign closes Thursday, 14th September.
