An Abbotsford industrial property with significant development upside opposite Carlton & United Breweries’ main plant traded for $8.3 million – 20 per cent over guide – at a socially-distanced on-site/online auction on Wednesday.
On 2520 square metres, 53-59 Church Street and 4-6 Mayfield St were offered by the family of Australian chief science officer, Alan Finkel, whose parents owned it for decades.
The purchaser, a local private investor represented by Heath Bedford, from advisory HRB & Co, intends to landbank.
The asset is fully leased but with short term tenancies; based on the annual return ($217,500) the price reflects a 2.6 per cent gross yield.
Gross Waddell’s Alex Ham and Michael Gross were the agents.
The auction was attended by about 50 people – amongst them other Abbotsford land owners, developers and commercial brokers.
Another 35 individuals watched virtually.
The suburb is about two kilometres north east of Melbourne (story continues below).
Abbotsford has seen a development wave since 2005 with much new product, apartments, delivered on parcels near the Yarra River (story continues below).
Its commercial stock comprises a lot of warehouse converted offices, of various quality, but taller A-grade towers are being increasingly proposed.
Last month we reported Forza Capital would incorporate a multi-level car park into the façade of an 11-level, 17,308 sqm workplace at 38 Grosvenor St.
In April, healthcare related software group Fred IT committed to part of a seven floor commercial complex launched for pre-lease a year earlier, at the north east corner of Mollison and Nicholson streets – the site of a former warehouse once occupied by Sabena Fashion and Rove McManus’ Roving Enterprises.
Also in 2019 United Petroleum co-founder Eddie Hirsch unveiled plans for a 10 level building on Hoddle St – a holding across the road from Collingwood.
It is unknown when CUB might consider offloading its substantial riverside portfolio opposite 51-59 Church St. On land which makes it one of the country’s most expensive factories – any brewery site redevelopment is expected to be master-planned and mixed-use.