The Grollo family has offloaded another trophy Melbourne investment as part of plans to meet Grocon debt repayment requirements.
The GSO, or Government Services Offices Dandenong building, as it is known, at 165-169 Thomas Street, is understood to be trading to Growthpoint Properties for c$165 million.
Developed 11 years ago for the state government, which is on a lease expiring in 2032 with fixed 3.5 per cent annual rent rises, the asset was one of the first completed as part of the multi-billion dollar Revitalising Central Dandenong initiative, which is still underway.
Rising eight levels, with 15,070 square metres of A-grade area, it includes 204 basement car parks.
The 2502 sqm block at the south west corner of Walker St overlooks Harmony Square and the distinctive local council office, which was built at about the same time.
Knight Frank’s Paul Kempton, Trent Preece and Neil Brooks are brokering the GSO Dandenong deal on behalf of the entity which owns the office directed by patriarch Bruno Grollo and two children, Adam and Leanna.
The sale comes two years since Capital Alliance won a state government contract to develop 1.9 hectares of sites around the office with a series of residential, commercial and community assets, expected to have a c$600m end value.
Grollo sell-down continues
The GSO Dandenong deal comes a week since the same vendor entity offloaded Grocon’s long time former headquarters, in Chifley Drive, Preston – now a fully leased investment – for $18.9m, reflecting a low 3.97pc yield.
Not long earlier the group sold a neighbouring 1.9ha Industrial zoned tract for $17.5m, and a 14 level Footscray office, to Centuria, for $223.7m (story continues below).
The trio also control a half-stake in the CBD’s QV complex.
Grocon was temporarily put into administration last year before a debt repayment agreement was struck with KordaMentha.
Last week, a sub-penthouse formerly occupied as the family home of another sibling, Daniel, who has controlled the Grocon business for just over 20 years, was sold.
On the 80th floor of Southbank’s Eureka tower, that property is understood to be trading for more than $10m.
Growthpoint buy-up continues
The Dandenong asset would be Growthpoint’s latest suburban office, coming two months since the group paid Blueprint Projects, part led by ex-Collingwood footballer Paul Tuddenham, $125m for the commercial component of a Hawthorn East mixed-use complex which replaced a Bilia Volvo dealership.
In late 2020 the fund manager and developer secured Bunnings to a distinctive commercial investment it had just completed in Melbourne’s inner east Burnley.
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