Bidding frenzy as Melbourne industrial property smashes $1M

HANDS were raised furiously as a total of 25 bids saw a Melbourne industrial property sell over its reserve for $1.005M, under the hammer, at 26 Eileen Road in Clayton South.

The asset, that came with a 680sq m* building area and 874sq m* land area, is currently tenanted and home to Kalessi Bathroomware, who use the property for storage.

The asset was marketed and sold by Ray White Commercial Oakleigh Sales/Leasing Consultant Theo Karkanis.

Mr Karkanis said it was an active campaign and the interest was so high he had to run two to three inspections a week.

“There was a real buzz at the auction with a crowd of 45 people turning up and six active bidders battled it out for an excellent industrial investment,” he said.

“The opening bid started at $800,000 and after much competition, the property sold under the hammer for $1.005M, 24 bids later.

“It came down to two final bidders and in the end, with a deadlock at $1M, it was just an extra five thousand dollars that sealed the deal for a local investor.

“It was no surprise to see such interest as we had 65 enquiries, 14 inspections and 21 contracts requested throughout the campaign.”

Mr Karkanis said two previous agencies had tried and failed to sell the asset, with an auction last year falling well short of the mark.

“When we were entrusted with the sale of this property, instead of relying solely on the marketing and advertising, we instead hunted for buyers by reaching out to our local contacts, and it certainly paid off for us and our vendor,” he said.

“There was a lot of interest generated online and it was fantastic to come across potential buyers we’d never had the pleasure of meeting before.

“The property is in a tightly-held industrial precinct and offered an excellent location with great access to arterial roads.

“Kalessi Bathroomware have a lease until February 2022 with a five-year option, with a current rental of $59,488* p.a. + GST + outgoings, and they use the property as storage for their two local showrooms.”

*Approximately.