Pomeroy Pacific has added to its growing pipeline with the $30.5 million acquisition of a prominent Mulgrave industrial site.
CBRE’s Sasan Misaghian, David Aiello and Ben Hegerty negotiated the sale of the 508-520 Wellington Road property – setting a record land rate for an industrial site of this scale in Melbourne’s Monash precinct.
The 4.1ha property adjoins Woolworths Victorian head office and distribution facility, which was acquired late last year by Harry Stamoulis for $91 million.
Mr Misaghian said both properties offered longer-term development potential, which had contributed to the strong pricing results.
“There is a shortage of available industrial land in Melbourne’s Monash precinct, which has created opportunities for developers to landbank larger sites which offer existing income,” Mr Misaghian.
“Both sites are surrounded by established residential – suggesting a higher and better use in the future subject to the relevant planning approvals.”
Pomeroy Pacific manages an over $1 billion project pipeline on behalf of its clients, comprised of more than 40 developments, ranging from medium to high density residential, retail centres, hotels, industrial projects and land subdivisions.
Pomeroy’s Chief Operating Office Talis Sterns said; “Our experience in industrial development spans almost 50 years and includes hundreds of buildings. This recent acquisition is timely and well-conceived to meet industrial demand.”
The Mulgrave acquisition follows Pomeroy’s purchase earlier this year of a 28ha Cranbourne West industrial site in a joint venture with Paul Little’s Little Projects.
The group is also undertaking a joint venture with Nigel Hunt’s McLaren Group in developing an industrial property directly adjacent to the on/off ramp of Eastlink on the corner of Greens Road and Logis Boulevard in Melbourne’s south-east. This mixed-use development comprises 18 warehouses, a United Petroleum service station, showrooms, supermarket, retail and over 2,500sqm of offices, with undercover carparking.
The group’s newly acquired Mulgrave site was last traded in March last year for $15.5m and has nearly doubled in value in 18 months.
The property is situated 21km from the Melbourne CBD on Wellington Road – a major east west arterial road which connects to Eastlink and Monash Freeway.
“The sale presented a unique opportunity to acquire a rare infill site in Melbourne’s tightly held and densely populated suburb of Mulgrave,” CBRE’s Mr Aiello said.
“The campaign generated interest from owner occupiers, developers and investors given the potential rezoning upside coupled with the existing lease to Renold Australia, a subsidiary of one of the world’s largest suppliers of industrial chain and mechanical power transmission products.”
Renold’s head office, factory and distribution centre is located on the site, offering a total gross lettable area of 8,049sqm with 18,000 sqm of surplus land at the rear.
The current net passing income is $960,990 per annum, with Renold’s existing lease expiring in March 2020.