ASX fund snaps up Mr Donut HQ to repurpose
The outgoing Mr Donut headquarters has sold to a fund manager which will repurpose the huge manufacturing plant and distribution centre as a self-storage facility.
The recently listed Abacus Storage King is paying $13 million for 296-306 (or 300) Lower Dandenong Road, Mordialloc – the largest south east industrial deal this year by value, according to the agents.
The offering was unique – the property coming optional with the high-profile business, stocked in both major supermarkets and many convenience retailers.
That component will now sell separately.
Stonebridge’s Dylan Kilner, Rorey James and Chao Zhang, the agents, said a mix including owner-occupiers in the food manufacturing game looked in.
With optional vacant possession, developers did too, they added; three offers were received from the Asia Practice team.
Mordialloc is 24 kilometres from Melbourne’s CBD.
New catchment, near rival
On 1.76 hectares on the south west corner of Sibthorpe Street, the Mordialloc property is configured with 5268 square meters of improvements – including a cold storage component and contemporary offices – developed by the Mr Donut operators in 2004 (story continues below).
There are also two large car parks on the site, formerly Lucas Industries’ headquarters.
“The acquisition of this asset…addresses a network gap we identified in the Melbourne market,” ASK fund manager Nikki Lawson said.
“Situated in a high-traffic area opposite a new Goodman estate and Moorabbin Airport, it offers attractive exposure for our brand and access to a community not currently serviced by Storage King,” she added.
The company will also be within metres of rival National Storage, also on Lower Dandenong Rd.
ASK is an ASX-listed self-storage fund created last year from a destapled Abacus.
Seven months ago the group banked $52 from a Port Melbourne office – a rise on the $43.5m it paid Anthony Wilson’s Terraplex in 2017.
Mr Donut, established in Springvale in 1979, was also represented by Link Business Brokers’ Steven Mostafa and Nadia Polzella for the Mordialloc sale.
Subscribe to our newsletter at the bottom of this page.
