A local investor with offshore connections accentuates the ongoing demand for strategically located showroom/ industrial freeholds, acquiring an expansive corner landholding with a lease to Fowles Auctions, in one of Melbourne's most hotly contested campaigns.

Gross Waddell ICR's Danny Clark, Andrew Waddell, Tony Aarons and Glenn Ye, sold 669 Blackburn Road, Clayton after generating over 190 enquiries and receiving 28 offers at the close of the Expressions of Interest.

Whilst the price is undisclosed, the sales price and yield continue to reflect the market's soaring demand for showrooms or industrial investments with underlying land value and is well over than the initial quote range.

"The property was purchased by an astute investor who proposes to hold the investment whilst the lease remains for the next 6 years and then proposes to capitalise on the scale of the corner landholding and develop it out," Mr Clark said.

"The campaign was fiercely contested and generated over 42 individual buyer inspections and 28 initial expressions of interest. Subsequently a 2nd round tender saw the property sold to one of the many unconditional bids that we received," added Mr Clark.

Mr Ye said "Given the existing location and underlying land value, we experienced extremely high levels of enquiry from offshore investors and local Chinese families, with the eventual purchaser having offshore connections but an established track record within Melbourne."

“Multiple industrial freeholds had sold in and around the City of Monash over the past 6-12 months with yields ranging from 4%-5%, with this sale achieving an indicative yield sub 3.50%. The ongoing demand for this sector is seeing buyers prepared to sit on land, with the holding income, for many years prior to being able to develop," Mr Waddell said.