Dandenong court building let, sold renovated
Private investors have traded one of two Victorian Family Law courts and the only one out of Melbourne’s CBD.
The Dandenong property, 53-55 Robinson Street, fetched $17.4 million following an off-market deal.
Vendor, a company directed by Resmed executive, Denis Midor, paid $12m in 2021.
At the time, the lease had three years left to run.
The Family Court was also in the process of merging with the Federal Court (which occurred on September, 1, 2021).
However the government stayed on and last year the recommitted, for an initial 10 years.
As part of that deal, the building would undergo a $6m refurbishment – taking place now – adding 200 solar panels, generating 96 kw of solar power, contributing to an aim to increase the NABERS and Green star ratings to 5-star.
The office area will also be improved to A-grade.
The tenant has two three year options.
Dandenong – for years considered Melbourne’s second city – is about 30 kilometres south east of the CBD.
Long-time occupier
Developed for the federal government as the Family Court in 1983, the Robinson St building contains 2729 square metres over three floors, and 60 car parks.
The site spreads 2371 sqm also facing Rodd Street, walking distance to Dandenong station.
Zoned Comprehensive Development – Schedule 2 – it could longer term make way for an alternate use.
In previous campaigns – in 2018 and 2019 – it was marketed for its potential to yield seven storeys.
Knight Frank’s Tom Ryan, Nick Bisset and Paul Lillis brokered the latest sale, off-market. Perpetual Commercial Real Estate’s Quinnie Nguyen and Peter Tran had it for public sale.
The result reflects a 6.4 per cent initial passing yield.
Charter Keck Cramer’s Lachlan Devine was the acquisition manager.
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