Landmark Dulux headquarters listed for sale by Salta Properties
Salta Properties has listed Melbourne’s landmark Dulux House building for sale as certainty returns to the commercial property market following the recent Federal election result.
The CBRE Middle Markets team of Scott Orchard, Josh Rutman and Lewis Tong have been appointed to steer the Public Tender process for the Clayton property on behalf of Salta, one of Melbourne’s leading family development companies.
It represents only the second metropolitan Melbourne office sale campaign this year in the $20 million+ price bracket.
Located on the corner of Princes Highway and McNaughton Road, the high profile Clayton building was developed as corporate headquarters for the Dulux Group in 2007.
Known for its striking architectural design, the property provides close to 6,000sqm of corporate office space on a site area of 7,727sqm.
The building features large open floor plates with a central core design, providing maximum flexibility to a landlord looking to reconfigure the building for multiple tenants in the longer term.
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 Dulux corporate headquarters benefit from high exposure corner frontage of 168 metres and a strategic location next to the Ikea anchored Springvale Homemaker Centre and opposite the $1 billion mixed-use ‘M-City’ development, which is being delivered by Schiavello.
M-city will include a new shopping centre, cinema and hotel to service the immediate area. The property also benefits from its location in the Monash Employment & Innovation Cluster, which has Melbourne’s largest concentration of jobs outside the CBD. The cluster supports approximately 75,000 jobs across a diverse range of industries and contributes over $9.4 billion to the Victorian economy each year.
Several major corporate groups are headquartered in the surrounding area, including BMW Australia, Kmart, Canon and PPG. Monash University’s 110ha Clayton Campus also continues to expand and develop with the recent delivery of the new Biosciences building by Denton Corker Marshall Architects.
“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.
“Investors are telling us that they are looking for quality office assets that they can hold with confidence for the medium-long term, but also those that have flexibility and angles for adding value, and this building provides exactly that,” Mr Tong said.
“The asset in only 10 years old and offers a high-quality lease covenant that is set to become even stronger given the current Dulux takeover bid. It also offers incredible scope for multi-letting and reconfiguration in the future.”
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.