The wealthy Hannan family, via its Rathdrum Properties, has sold a high-profile, vacant factory in Noble Park, 25 kilometres south east of Melbourne.
A local syndicate is buying 504-520 Princes Highway (pictured, top) for $15 million.
JLL’s Matt Ellis negotiated the deal.
On 1.6 hectares, the property was until two years ago occupied by PMP Group – a family business merged in 2016 with IPMG, in which it owns a major stake – and which early last year rebranded as Ovato.
Coincidentally, another commercial property occupied by PMP until about four years ago – 380 City Road, South Melbourne – is for lease after the tenant which filled it, Domain Group, relocated when Fairfax merged with Docklands-based Nine last year.
The Hannans are AFR Rich 200 members with a fluctuating net worth recently published at just over $400m.
Its Rathdrum Properties holds commercial real estate, too, including a Parramatta office at 93 George Street which cost $37.3m in 2015.
Multiple development outcomes possible at Noble Park site: agent
The rectangle shaped Noble Park site includes a substantial undeveloped tract at the rear, and 200 parking bays in three lots fronting Princes Highway.
All of this could be developed, possibly after being subdivided and sold down.
A major improvement at the centre of the property could be retained, refurbished – or razed: it contains a 7330 sqm original office/warehouse and 5250 sqm high bay facility with undercover loading.
Also with a double storey 2461 sqm office, the proportion of industrial space vs workspace at 504-520 Princes Hwy is 16 per cent – which is high (similar properties typically have less than half of this).
The Hannans have recently been seeking a tenant to occupy it – again via JLL.
Noble Park is about five kms closer to the city along Princes Hwy, than Dandenong – the precinct which is considered the industrial epicentre of Melbourne’s south east.
In February, Quintessential Equity banked $14.7m selling a Noble Park warehouse at 180 Browns Rd (pictured, above right) – an asset for which it paid $6.8m in 2013.
Offered with a new 10-year lease, it traded on a 5.74pc – the investment including a substantial and unused (4000 sqm) tract of land which could be developed or sold off.
Coincidentally, Quintessential also owned 93 George St, Parramatta, for five years after 2009.
Of the Melbourne property, Mr Ellis said JLL is “continuing to receive strong enquiry for industrial property in the south east where land remains tightly held and serviced land options are limited”.
A lack of supply versus demand, the agent added, has resulted in a small rise in average rents over the past 12 months.
For Prime quality stock, tenants in this pocket can expect to pay an average of about $92.70 per sqm, pa – up 3.3pc on the price they would have been asked last year.