Capital Gains
It’s probably the largest transaction ever to be hacked at the Thomastown Junk & Treasure Market. A developer has snapped up the largest portion of the site for more than $15 million.
The days of tracking between scrap and old tool tables can be counted by a buyer who understands a joint venture between two developers with experience in large scale retail and office warehouse projects.
The 2.49 hectare parcel of land is located at 26 Wood Street, alongside two other smaller parcels at 261 Road and 267-273 Settlement, which remain on the market.
Records show the seller is Middendorp Electrical Co. The site has two short-term tenants, and returns $155,224 in annual rent.
GrayJohnson agent Matt Hoath, who discussed the deal with CBRE’s Daniel Eramo, said the two-phase campaign attracted interest from a variety of buyers, including owners, institutional developers – and even foreign interests, including a large bid from a Chinese buyer who wants to acquire the entire property.
“While the smaller, more unsophisticated end of the market is currently showing some fear due to financial constraints, wealthy private buyers and corporate developers are stepping up. They are realizing that it is a strategic time to buy high-quality, well-developed land,” Hoath said.
“While everyone else in the media is talking about doom and gloom, this campaign proved the exact opposite. Buyers are moving away from small, man-cave developments, which have fallen into disrepair, and are focusing more on prime industrial properties that support long-term business growth.”
Kealba
Melbourne-based Ryman Healthcare’s expansion plan has hit another snag with the $30.85 million off-market sale of its Kealba site in the north-western suburbs.
The price is also decreasing. In 2022, Ryman paid $38.5 million for the 6.07 hectare former high school at 27 Driscolls Road and announced plans for a $155 million integrated seniors care complex.
Ryman, which is dual-listed on the Australian and New Zealand stock exchanges, was on an acquisition spree in the early 2020s with plans to launch seven more stations to add to its existing seven. The strategy has been narrowed down to five locations, including Essendon and the former Daisy hotel and nursery in East Ringwood.
Ryman started construction on the Ringwood site in 2022 when it suspended work without explanation. A former protective clothing factory on Gaffney Street, Coburg is for sale.
Ryman told Capital Gain it is keeping sites “with the greatest potential for future development” but selling those that “are likely to deliver the greatest value to shareholders through cash flow”.
Last year the developer completed the Nellie Melba Village in Wheelers Hill and is now in the final stages of the Hubert Opperman Village in Mulgrave.
The buyer of Kealba’s property is understood to be another ASX-listed property developer with plans to dump the retirement project and plan a new townhouse.
Cushman & Wakefield’s Hamish Burgess and Joe Kairouz brokered the deal.
Ocean Grove
A new retail center in the outer suburbs of Ocean Grove has sold for $21.8 million with an average yield of 5.37 percent.
It was a strong result for the new facility at Activity Park, behind the Kingston Village shopping centre, which was completed last year by developer Leading Edge. The biggest transaction was a 7-Eleven servo at No.12-14, which was bought by a Sydney investor for $8.55 million at a yield of 5.88 per cent.
Hungry Jacks earned $4.65 million for a strong yield of 4.85 percent and The Reject Shop was snapped up for $3.45 million for a yield of 5.42 percent.
Stonebridge’s Kevin Tong and Rorey James brokered the deals along with CRS Commercial’s Myles Snow and Lou Montalti. “We were pleased to receive bids for all properties through our Asia Practice, especially given the regional location,” Tong said.
Tivoli
Buyer’s solicitor Frank Valentic has bought an apartment building for $5.11 million in a prime location in South Yarra.
The three-story building at 65 Tivoli Road attracted six offers from a mixed group of bidders including investors, developers and owner-occupiers. The 12 rooms are on a 619 sq m plot off Toorak Road. Records show they last changed hands in 2012 for $3.85 million.
Valenic has had a long-standing business of buying flats on behalf of buyers and the acquisition of Tivoli Road is number 342.
“We saw an opportunity to improve the property through a renovation program, while also increasing cash flow and long-term returns,” Mr Valenic said. The transaction was handled by Hamish Burgess of Cushman & Wakefield, Joe Kairouz and Leon Ma.
Still in Stonnington City, the team, along with Oliver Hay, have a development site at 693-699 High Street on the corner of Orrong Road.
A plot of land of 1280 square meters includes a house and three shops. It last changed in 2024 at $4.68 million but didn’t settle until February of this year.
Frankston
Land bankers are expected to make a play for the Frankston super site on 2198 sq m at 439-447 Nepean Highway and 82-88 Wells Street. The three-part site is located in the Frankston Activity Center which allows for future development of up to 12 storeys or 41 metres.
It is surrounded by several recently approved projects of more than 14 levels, including the Port with 94 units, and Urban DC and Pace’s Solene, which has 144 apartments. Construction is underway on both.
The four properties are leased to 10 different tenants and return $542,381 a year in rent. Fitzroys’ Chris Kombi, Tom Fisher and Ben Liu are selling the site and are expecting more than $7 million.
Child care
A portfolio of childcare centers has entered the market with a total price tag of $35 million. The centers located in Preston, Bundoora, Point Cook and Melton, have long leases to Nino Early Learning, Kids Academy and Papilio.
Records show Preston’s creche at 365 Bell Street was purchased by Di Dio Holdings in 2017 for $11 million. The late Angelo Di Dio, who died in 2023, once farmed large tracts of land in the western suburbs which were later sold to housing developers.
The Melton Center at 7 Reserve Road was sold by the developer, Bamfa Properties of the Agosta family, to the Di Dio family for $7 million in 2023. The portfolio generates a combined income of over $2.39 million per year and has an average lease term of over 11.5 years.
Colliers’ Luke Soccio and Tim McIntosh are running the expression of interest campaign.
Business Brief Magazine provides top stories, exclusive coverage and expert opinion. Sign up to receive it every weekday morning.
