Biotechs breed interest around Monash

Activity around the Monash University Technology Precinct is hotting up with deals brewing and a raft of fresh leases and buildings underway.

While CBD offices have struggled, the industrial underpinnings of the south-east area and the post-COVID boost to biotech developments have helped maintain values.

In June, Dexus sold the 19.6 ha Axxess Corporate Park to Gateway Capital for around $315 million, a 10.5 per cent premium to its $285 million book value.

The Ferntree Business Park, Melbourne

And now the Woolworths’ state office and distribution centre at 508-550 Wellington Road, Mulgrave, is understood to be in due diligence for around $200 million.

The 23.23 hectare property is owned by rich listers Harry Stamoulis and Dug Pomeroy who each own a different section of the holding.

Stamoulis paid $90.75 million for the 19.1 hectare bulk of the property in 2017 while Pomeroy bought the four hectare balance in 2019 for $30.5 million.

Agents Dawkins Occhiuto declined to comment on the deal. The property was built for Woolies on the western flank of the Waverley Park football ground in the 1970s.

On the eastern side of Waverley Park – redeveloped as housing by Mirvac in the early 2000s - Graeme Wise is offloading the former Motorola headquarters.

The 3.66-hectare property was also home for many years to UK skincare group The Body Shop which Wise brought to Australia in the 1990s.

The property, leased to a sporting goods distributor, has been rezoned to Mixed Use.

CBRE agents David Minty, Nathan Mufale, Sasan Misaghian and Jing Jun Heng are handling the campaign. The price could be as high as $60 million, but they declined to comment.

However, Monash University recently paid $66 million for the similarly sized Toyota research and development centre at 611-625 Blackburn Road, Notting Hill.

Meanwhile, Biotech companies have signed up to 18,239 square metres of space at Spirit Super’s Ferntree Business Park.

New tenants at the Notting Hill estate include Co-Labs, which will open a new 1200-square-metre co-working and co-located laboratory space in a re-purposed warehouse on the 8.5 hectare park.

Existing tenants Olympus Medical, Draeger and Johnson & Johnson have also signed up for new purpose-built space.

Draeger has committed to 9067 square metres of space on a ten-year term, while Olympus has signed a fresh 12-year lease for 4629 square metres. Johnson & Johnston has taken up an extra 1695 square metres of new office and laboratory space.

Colliers agents Ash Dean, who negotiated the deals with Rob Joyes, said the latest wave of enquiries followed the opening last year of Catherics’ new $4 million lab to develop cancer immunotherapy treatments.

“They moved into an office/warehouse that was previously occupied by 7-Eleven and completely gutted it. That really led the charge. One lease can generate interest from other people,” Dean said.

Next door at Monash University, building is also well underway for Moderna’s mRNA vaccine manufacturing facility.

Ferntree Business Park, on Ferntree Gully Road, was acquired by MTAA Super (since merged with Tasplan to become Spirit Super) in 2017 for $168 million.

It has 50,000 square metres of space across 10 buildings and was expanded recently with a six level 9650 square metres 4.5 star Nabers-rated office designed by Gray Puksand. Other features include a Quest hotel and on-site childcare.