Repco’s former Mulgrave HQ sells for $9.1 million

The Mulgrave office at 362 Wellington Road (outlined), also with frontage to Enterprise Court, includes a car park which could be developed – but sold to an owner-occupier.

Two Mulgrave offices – listed in the same week in early February – traded over the last 10 days of March.

Separate buyers acquired the assets – offered by different vendors and marketed by two agencies.

In the largest and most recent deal, 362 Wellington Road – the former headquarters of car parts retailer Repco – found a buyer, for $9.1 million.

The two storey building offers 3775 square metres of lettable area last renovated in 2017.

Offered vacant, it is selling to an owner occupier.

The 362 Wellington Road property on 8719 square metres (outlined), and the office abutting it to the south-west (#372 Wellington Road), sold in the last 10 days of March.

On a 8719 sqm zoned Special Use 6 – an unusual gazetting which allows for a variety of commercial uses like a university, transfer station, post office, hotel, convenience store – even an adult sex shop.

It has 198 car parks (with a further 20 on a 99 year lease).

Savills brokers Benson Zhou, Clinton Baxter and Julian Heatherich represented the vendors, China-based investors which paid $8.8 million in September, 2017 – the month considered the peak of the last local property cycle.

“Not only does this sale highlight demand for premium suburban office opportunities but also the strength of the commercial market despite current economic headwinds,” the brokers said.

“The buyer owns a local business that desperately needs expansion space to support their ongoing growth. 

“This building proved to be ideal for their requirements.”

Neighbour sells too

Meanwhile, the next holding south, 372 Wellington Road, also traded.

On a 4742 sqm parcel with the same (SUZ6) zoning and 70 car parks, it has chemicals distributor IMCD Australia and the government’s Ambulance Victoria as tenants.

Based on the net annual income ($479,600) and sale price ($6.6 million), this property is trading on a 7.26 per cent yield.

Fitzroys Chris James, David Bourke and Shawn Luo marketed the 1675 sqm office which last changed hands in 2010 for $4.65 million.

Both 362 and 372 Wellington Road sit on sites abutting Enterprise Court.

Near one of Melbourne’s busiest intersections (Wellington Road/Springvale Road), they are about 20 kilometres south east of the CBD.

Mulgrave is popular with high-tech industrial users.

BMW Australia, Mercedes Benz Australia, Wesfarmers’ Kmart and Pfizer are amongst the precinct’s occupiers.

Fitzroys sold 372 Wellington Road, Mulgrave (outlined), 20 kilometres south east of Melbourne’s CBD.
The double storey 372 Wellington Road, Mulgrave, office, includes Ambulance Victoria as a tenant.
The Mulgrave office at 372 Wellington Road occupies a 4742 square metre plot.

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Marc Pallisco

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

Marc Pallisco