Fowles warehouse trades for $17m

The 1.4 hectare block (marked) is opposite Schiavello Group and Nick Saraceno’s M-City.

A local investor backed by offshore capital has snapped up a sprawling industrial property opposite the $1 billion M-City.

The 1.4 hectare Clayton warehouse at 669 Blackburn Road, on the north west corner of the Princes Highway, is trading for just under $17 million, reflecting a low 3.4 per cent net passing yield.

Fowles Motor Group is the tenant on a lease expiring in 2028.

The C2Z zoned holding has significant upside after that; M-City, completed by Schiavello Group and Nick Saraceno on a 3.5ha block, contains shops, offices and about 640 apartments.

Central site, development upside

With 6700 square metres of improvements, the Fowles asset was marketed for its value-add potential, Clayton sitting in the Monash precinct – Victoria’s second biggest employment cluster outside of the CBD.

It was also promoted for its proximity to Monash University, Springvale Homemaker Centre and the proposed suburban rail loop station, which will be directly linked to the Clayton station, but also have an entrance west of Clayton Rd (story continues below).

Gross Waddell ICR’s Danny Clark, Andrew Waddell and Glenn Ye were the agents.

Their deal comes a year since Glicks Bakery directors offloaded a 1.76ha industrial property in the suburb – with limited development upside – for c$12m.

In 2020, Centuria paid Telstra $416.7m for a data centre investment on 3.2ha at 1816-1862 Dandenong Rd, near the Fowles property.

Clayton is about 24 kilometres south east of Melbourne.

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Marc Pallisco

A former property analyst and print journalist, Marc is the publisher of