The 4.1ha property adjoins Woolworths Victorian head office and distribution facility.

CBRE's Sasan Misaghian, who negotiated the deal with colleagues David Aiello and Ben Hegerty, says both properties offer long-term development potential which had contributed to the strong pricing results.

“There is a shortage of available industrial land in Melbourne’s Monash precinct, which has created opportunities for developers to landbank larger sites which offer existing income,” Mr Misaghian said.

“Both sites are surrounded by established residential – suggesting a higher and better use in the future subject to the relevant planning approvals.”

The sale of the property set a record land rate for an industrial site of its scale in Melbourne's Monash precinct.

Development and advisory firm Pomeroy Pacific manages an over $1 billion project pipeline, comprising over 40 developments which range from medium to high-density residential, retail centres, hotels, industrial projects and land subdivisions.

The group’s newly acquired Mulgrave site was last traded in March last year for $15.5 million, and has nearly doubled in value in just 18 months.

Situated 21 km from the Melbourne CBD, the property generated significant interest.

“The sale presented a unique opportunity to acquire a rare infill site in Melbourne’s tightly held and densely populated suburb of Mulgrave,” CBRE’s Mr Aiello said.

“The campaign generated interest from owner-occupiers, developers and investors given the potential rezoning upside coupled with the existing lease to Renold Australia, a subsidiary of one of the world’s largest suppliers of industrial chain and mechanical power transmission products.”

Renold’s head office, factory and distribution centre is located on the site, offering a total gross lettable area of 8,049sqm with 18,000 sqm of surplus land at the rear.

The current net passing income is $960,990 per annum, with Renold’s existing lease expiring in March 2020.

For more information contact the listing agents via the contact details below.

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