Central Glen Waverley asset soars at auction

The Glen Waverley investment contains 842 square metres over two floors.

A double storey mixed-use building opposite Glen Waverley station sold at auction last month for $13.335 million – nearly 70 per cent over guide.

With 842 square metres, 33-37 Railway Parade North was offered fully leased.

The Railway Parade North store (outlined) is near The Glen and Century City.

Being 9B compliant, one of the occupiers is an adult training centre; a beauty school and dentist occupy too.

The ground floor has been leased as an Asian grocer for decades.

The asset neighbours a Dan Murphy store, on 6606 square metres, which investor Weian Zhang outbid Mirvac to acquire at auction 2015.

That $31m result reflected a low c1.5pc yield, indicative of the significant development upside.

George Calombaris owned 15 Railway Parade North between 2014-2016.

Also in the pocket, chef George Calombaris in 2014 co-purchased a single storey property at 15 Railway Pde North – outlaying $1.8m.

On a 209 sqm Commercial 1 zoned parcel, it was acquired to occupy but flipped two years later for $2.6m.

In 2020 a triple fronted building on 379 sqm at 55-57 Railway Pde North, abutting the 15 storey Galleria building, traded for $7.35m.

Development upside

Ray White Commercial’s Ryan Trickey and Will Jonas marketed 33-37 Railway Pde North, Glen Waverley, to both investors and developers; the 635 sqm site is also zoned Commercial 1 (story continues below).

“We have worked hard with the owners to ‘tune’ the asset up over the last 12-24 months,” he said.

“Work must be done before coming to market to get an asset prepared, this will remove many questions from buyers and ensure that nothing is left to chance,” he added.

“Agents taking assets to market without considering their position with respect to rents and leases will find themselves lean at the close of the campaign,” according to the executive.

A passive investor acquired the property against an $8m guide; it outbid four other suitors.

“Outcomes like this only further validate that, when run well, auctions are fantastic vessels for maximising results,” Mr Trickey said.

Elsewhere in the area, Golden Age recently completed three apartment towers, the tallest of 18 storeys, on airspace over The Glen shopping centre.

In 2020, the same developer with Time & Place outlaid $23m for a 1.65 hectare ex-school with plans for a townhouse project.

Last year we reported plans for a 17 level residential tower at 251-261 Springvale Rd.

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Marc Pallisco

A former property analyst and print journalist, Marc is the publisher of realestatesource.com.au.