Family sells business’ Northcote HQ to industrial developer
A relatively large inner-city industrial property, held since 1988 by the Rutledge family for its Rutledge Engineering business, has sold to a developer.
In Northcote, at the Fairfield border, 195 and 199 Heidelberg Road collected $5.5 million.
It contains 1523 square metres of improvements including sheds, warehousing, B-grade offices and A-grade boardrooms and reception.
Also with 40 car parks, with Albert St access, the 3048 sqm Industrial 3 zoned block is passed by over 30,000 vehicles a day.
The incoming owner, behind five projects in the area, bought both properties, offered individually, one, with the 1095 sqm, on land about twice the size (1055 sqm vs 2000 sqm).
The Rutledge family offered it with a short-term leaseback paying starting annual rent of $47,599 ex-GST.
$50m on unplaced capital: agent
Eleven offers came in according to Stonebridge Property Group’s Dylan Kilner who marketed the site via an expressions of interest with campaign with Max Warren and Chao Zhang and Gross Waddell’s Danny Clark and Andrew Waddell “identifying more than $50m of unplaced capital”.
“We saw particularly strong interest from owner-occupiers in Collingwood and Fitzroy looking to relocate their operations due to the increasing burden of land tax in those suburbs,” Mr Kilner said.
“This strong developer presence underscores the scarcity of quality industrial landholdings in Melbourne’s inner urban precincts,” he said.
According to Mr Warren “the result reflects growing confidence in the city fringe industrial market, particularly for sites that offer scale, flexibility, and long-term redevelopment potential.
United Property’s Peter Smythe was transaction manager.
Rutledge Engineering was established in 1979.
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