Colliers Transacts Clyde North Retail Asset on Behalf of Mirvac

Newly completed building offering significant future upside attracts strong interest in Melbourne’s growth corridor.

Colliers is delighted to announce the successful sale of the newly completed mixed-use building located at 35 O’Connor Avenue, Clyde North. The premium asset, fully leased to Mirvac Group was purchased by Oreana Group for $3.7 million.

Completed in 2023, the two-level freehold building spans 632sqm of GLA and features high-quality finishes, excellent natural light, and energy-efficient systems. The property is prominently positioned on a 2,334sqm site and includes convenient on-site car parking.

Lucas Soccio, Colliers Executive of Investment Services, said, “The property was highly sought after, attracting nine offers from diverse buyer profiles. The childcare asset class remains dominant, with six offers intended for future childcare use.”

“The interest throughout the campaign was strong as the property appealed to a wide range of buyers, which resulted in over 75 active enquiries. This asset presented a unique opportunity to acquire a recently completed building secured by a lease to ASX-listed company Mirvac. The potential for future repositioning and development makes it an attractive investment.”

The building’s adaptable layout and multiple workspaces offer various future uses, with medium-term rental and capital growth potential through repositioning or redevelopment to meet the evolving needs of the growing Clyde North residential area.

Tim McIntosh, Colliers National Director of Retail Middle Markets, noted, “Clyde North plays an important role in Melbourne’s south-east growth corridor, which is among the fastest-growing areas in Australia. The rapid population increase has left the region significantly underserviced in terms of retail and commercial amenities.”

“The campaign saw eight underbidders with $24 million in unplaced capital, highlighting a shift and increase in market demand. Growth corridors in Victoria continue to attract savvy investors and occupiers looking to capitalise on Melbourne’s rapidly growing population,” added Mr Soccio.