Matter Projects has purchased a 2.25 hectare site in Clayton South for an approx. $23 million retail, fuel and industrial redevelopment
The deal for the triangular site at 502-520 Clayton Road, Clayton South was negotiated by JLL’s Daniel Kelly and CBRE’s Sasan Misaghian and Bryce Pane.
Matter Projects is an emerging residential and commercial developer based in Melbourne.
The Clayton South site offers street frontages to Clayton Rd and Fairbank Rd in the heart of Melbourne’s industrial South-East.
JLL’s Daniel Kelly & CBRE’s Mr Misaghian and Mr Pane said Matter planned a major service station on the corner with the main road frontage proposed for retail and the remainder of the site for industrial units.
The property was sold following a five-week expressions of interest campaign that attracted seven parties.
The well-positioned industrial site of 22,590 sqm offered a range of development opportunities.
The land is zone Industrial 1 zoned land under City of Kingston on a corner with a 145m frontage to Clayton Road and included 3910 sqm total building area including main offices, lunchrooms, workshop and warehouse space and extensive concrete hardstand of over 9,000m2*
Mr Kelly said the South-East Melbourne market land values had experienced powerful price growth driven by a strong upswing in rentals and the fall in yields driven by record low interest rates.
“The market has only really kicked along dramatically in the past 2-3 years when prices started rising steeply,” he said.
In 2013 the prime yield range was between 7%-7.5% leading to a peak in 2021 of 4%. Yields have only softened slightly in Q3 2022 to around 4.5%. Over the same period prime rents rose from under $90 sqm to more $110 sqm.
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