51.5 million for six hectares in Clayton

$51.5 million for six hectares in ClaytonThe PMP Printing site at 31-49 Browns Road in the Melbourne suburb of Clayton sold to an offshore developer, presenting significant redevelopment potential as the precinct undergoes major transformation.Owner Abacus Property Group, the only core plus investor listed on the ASX200, sold the site on a yield of four per cent, with a 6.8-year WALE.Strategically located within the inner South East, the site is located near Monash Medical Centre and Monash University. Cameron Jones, acquisition director for Pomeroy Pacific, was acting on behalf of an offshore client. He says the sale was an opportunity for his client to secure a site that offers significant redevelopment potential with an acceptable level of return. Knight Frank’s Gab Pascuzzi and Stephen Kelly brokered the off-market deal.The buyer, an offshore developer, also acquired a four-hectare site in Maidstone for $41.5 million in May, also through Knight Frank.At the time, Kelly said the heightened level of developer demand for large infill sites in Melbourne’s suburbs has been fuelled by a perceived oversupply of inner-city apartments and CBD planning changes.The agency has transacted more than $160 million of similar industrial properties in recent months, and Knight Frank says this trend set to continue as councils actively rezone industrial precincts to a higher use. “Most of the demand is coming from offshore buyers with the trend coinciding with concerns of an oversupply of apartments located closer to the CBD,” Pascuzzi says.