In a major vote of confidence for Melbourne’s commercial property sector, one parcel of the iconic Thomastown Trash and Trivia Market site on Settlement Road has been sold in a highly competitive, two-round sales campaign, defying economic uncertainty.
The transaction was brokered in a joint agency campaign between Matt Hoath of GrayJohnson and Daniel Eramo of CBRE.
While the exact sale price remains confidential, the final transaction ultimately achieved a figure well above the agent’s initial quote range. This reflected the intense demand for high-quality, substantial industrial and commercial landholdings in the central Thomastown commercial precinct.
The property was acquired by a joint venture of two high-profile localised developers, known for delivering upmarket, large-format retail and premium office-warehouse projects. The deal was finalised on an unconditional basis, to secure a swift transaction.
Matt Hoath, Director at GrayJohnson, says the campaign’s success strongly demonstrates the upper end of the commercial property market specifically for properties valued between $5 million and $30 million remains exceptionally robust.
“While the smaller, more unsophisticated end of the market is currently showing some nervousness due to financing constraints, wealthy private buyers and corporate developers of substance are actively making moves,” Mr. Hoath said. “They recognise that it is a strategic time to buy high-quality, well-located land.”
The two-round expression of interest campaign drew widespread engagement from a diverse pool of buyers, including prominent owner-occupiers, institutional developers, and even offshore interest, including a significant bid from a Chinese buyer looking to secure the entire estate.
“When everyone else in the media is talking ‘doom and gloom,’ this campaign proved the exact opposite,” Mr. Hoath added. “We saw excellent inquiry and engagement from start to finish. Buyers are steering away from smaller ‘mancave’ style developments, which have fallen out of favour, and are heavily focusing on large prime industrial assets that support long-term business growth.”
Following the successful unconditional sale of this primary parcel, the agents confirmed that the two remaining land parcels on Settlement Road are still available. These remaining allotments present a rare opportunity for premium industrial development and can be purchased either separately or together.
