This article is from the Australian Property Journal archive
TELSTRA has offloaded a 2.3-hectare parcel of south east Melbourne land to Monash University for around $30 million, in one of two fresh deals that sees the university on the buy side.
The Clayton land at 762-766 Blackburn Road is opposite the University’s major campus and the new $564 million Victorian Heart Hospital, within what is known as the Monash National Employment and Innovation Cluster.
The telco lobbed the larger 6.5-hectare site – home to its global headquarters – to the market late last year with expectations of $80 million in its latest real estate divestment play. It sold its data centre in the same suburb to Centuria Industrial REIT for $416.7 million.
JLL’s Josh Rutman, Jesse Radisich and MingXuan Li sold 762-766 Blackburn Road via expressions of interest with Urbis as transaction manager.
Rutman said the property was aggressively pursued by a range of private and institutional players. He said the site has zoning that restricted the future uses that could be developed, which is further evidence of the confidence that buyers have in this fast-growing pocket of the market.
He said the underlying landholding attracted developers who saw an opportunity to capitalise on the tremendous demand in a world-class education, technology and research precinct.
“A range of outcomes were being proposed for the site, including healthcare, life sciences and last mile logistics.”
More than 70 enquiries were received and five formal offers made from local developers, institutions, universities, data centre and medical operators.
The Victorian and Commonwealth governments are both providing ongoing investment into the precinct, which is home to 13,000 businesses and medical and research facilities including the CSIRO, BrainPark, Monash Health and the Australian Synchrotron and the proposed Moderna mRNA manufacturing facility.
Monash buying spree
Meanwhile, Monash University has also picked up a 5,000 sqm site in Parkville, on the edge of the Melbourne CBD, from the CSIRO for as much as $50 million, the Australian Financial Review reports.
The 343 Royal Parade property, next to a Monash University campus home to its faculty of pharmacy and pharmaceutical sciences, has been used for research by the CSIRO since the 1950s. CSIRO’s 2021-22 Annual Report listed the site’s book value at $40.5 million.
Monash University is reportedly planning to refurbish the Parkville property to expand the Monash Institute of Pharmaceutical Sciences facilities, to enhance research into new and improved drugs and medicines, with priority areas including medicinal chemistry, mRNA therapeutics and neuro medicines.
