Steller sells Highett block for $3.4 million

EXCLUSIVE

Steller has sold an office investment in Highett, about 16 kilometres south-east of the Melbourne CBD.

The two-storey building at 260-264 Highett Road traded for $3.375 million following a campaign managed by Gross Waddell’s Alex Ham and Andrew Greenway, who both declined to comment.

Based on the complex’s annual rental return, the deal is being struck on a 4.4 per cent yield.

The sale price values every square metre of lettable building area at $3750.

Steller obtained a permit to replace the Highett site (outlined) with an office.

Steller had obtained a permit to replace the 1120 sqm land holding with a three-level commercial and retail building atop a basement car park.

Zoned Commercial 1, the plot could also make way for a medium-density residential project: two four-storey buildings are across the road.

The Highett train station is about 200 metres away.

The property is one of a string listed for sale recently by Steller, which is winding down.

This month alone it has offered sites in East Keilor, Hampton and South Melbourne. Other blocks, including the St Kilda block where the Greyhound Hotel once stood, and Sorrento’s Continental Hotel, which it co-controls, are mooted to hit the public market soon.

On Tuesday, Steller‘s Caulfield East headquarters at 840 Dandenong Road was listed for lease. A Moorabbin warehouse it committed to rent for another 18 months is also on offer after the developer vacated without notice.

Last month, the CSIRO last month listed for sale a 9.34 hectare former laboratory a 37 Graham Street and 32 Middleton Street, Highett.

Being marketed to medium density builders as Park Village, sources speculate this site could exchange for a figure close to $100 million.

Marc Pallisco

A freelance property writer and analyst, Marc is a co-founder of realestatesource.com.au.

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