Developers snap up two outer Melbourne commercial sites
Developers have outlaid about $80m for two commercial development sites in Melbourne’s outer suburbs.
In the biggest deal, Sydney builder Bathla is paying National Pacific Properties, a division of Burbank Homes, $67.65m for the Clyde Town Centre block at 1625 Ballarto Road.
The 26.23ha parcel, 48 kilometres south east of the CBD, will make way for a multi-supermarket shopping centre and offices in what is expected to be a 10 year project.
The property cannot accommodate a housing estate.
Bathla is acquiring the site via an entity, UGB 399 Pty Ltd.
It is the group’s maiden interstate investment.
Clyde Creek
The Ballarto Rd parcel forms part of a precinct affected by the Clyde Creek Precinct Structure Plan.
Stonebridge’s Justin Dowers and Julian White, who represented National Pacific with LAWD’s Peter Sagar and Paul Callanan, said 11 offers were received.
“The engagement in this site was representative of the increased demand and pricing witnessed on retail investments over the past 24 months as yields,” Mr Dowers added.
“As yields have compressed on retail investments, we are seeing more buyers wanting to get involved in the development phase, in order to create more value in the deal, rather than simply purchasing the investment product,” according to the executive.
Mr Sagar said “unprecedented demand” for housing in the south east growth corridor will underpin demand for large scale retail and mixed-use opportunities (story continues below).
At nearby Clyde North, in August, Mirvac outlaid c$70m for a c30ha residential development site at 105 Smiths Lane while Dahua paid $100m for a 40.9ha parcel at 75 McCormacks Rd.
Not long earlier, Brown Property Group spent over $230m for a Clyde block at 1775 Ballarto Rd and 30 Tuckers Road.
Spreading 115.75ha, that land can accommodate over 1500 dwellings.
Wallan site collects c$12m
Meanwhile at Wallan, about 50km north of town, a commercial development site at 2451 Epping-Kilmore Rd, is trading for a speculated $12m.
Affected by the Wallan East Precinct Structure Plan, the 37.8ha parcel is expected to make way for an industrial project.
It is near housing estates being marketed by Brickworks Group, Frasers Property Australia and Resimax.
Mr Sagar and Mr Callanan, with colleague Darcy Tobin, were the agents, but declined to comment on buyer or price.
Of the Mitchell Shire however, where this site is located, they said the residential population is forecast to quadruple to about 170,000 residents by 2041.
Subscribe to our newsletter at the bottom of this page.
