Melbourne’s iconic Dulux House has been put up for sale by Salta Properties, with an asking price of more than $20 million.

The building, which has acted as the corporate headquarters for the Dulux Group since 2007, is located in the Clayton on the corner of Princes Highway and McNaughton Road.

The property provides almost 6,000 sqm of corporate office space and has a total site area of 7, 727 sqm.

Dulux currently lease the entire property, while also owning and occupying two adjoining properties for research and innovation activities.

The company is currently the subject of a takeover bid for Japanese giant Nippon Paint, Asia’s largest paint manufacturer, with the deal expected to be finalised in July.

The CBRE Middle Markets team of Scott Orchard, Josh Rutman and Lewis Tong have been appointed to oversee the public tender process for the Clayton property on behalf of Salta, one of Melbourne’s leading family development companies.

At a glance

• Dulux House in Melbourne suburb of Clayton up for sale for more than $20 million
• The property provides almost 6,000 sqm of corporate office space and has a total site area of 7, 727 sqm
• Dulux currently lease the entire property, while also owning and occupying two adjoining properties for research and innovation activities

Mr Orchard said the property’s location – adjacent to Monash University’s Clayton campus, the headquarters of BMW Australia, Kmart, Canon and PPG respectively and the $1 billion mixed-use ‘M-City’ development – makes it a high growth opportunity.

“The Dulux House opportunity is a very exciting one for office investors as the property is well positioned to benefit from projected jobs growth, with employment numbers in the Monash Cluster potentially doubling over the next three decades” Mr Orchard said.

“This has continued to attract investment from some of the country’s largest A-REIT’s and private owners, as well as ongoing interest in new commercial and mixed-use developments. CBRE’s Mr Tong noted that the Salta offering was highly suitable and strategic for Dulux’s purposes, but also provided potential future upside.”

Mr Tong added that Melbourne’s metropolitan market had become increasingly appealing for buyers, particularly international investors who had historically focused on the CBD or city-fringe.

“There has been close to $500 million of investment from Chinese and Hong Kong capital in Melbourne’s metropolitan office sector in the past year or so and we expect this property will be keenly sought,” Mr Rutman said.

Tenders close on Wednesday 31st July 2019.

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