Gross Waddell ICR has successfully brokered the sale of 321 Middleborough Road, Box Hill South for $15.5 million, reflecting a 5.21% yield (after land tax), following a highly competitive sales campaign that attracted both domestic and offshore investors.
The property was acquired by an offshore investor after generating more than 140 enquiries and seven formal offers, reinforcing the continued appeal of large-scale retail investments within Melbourne's tightly held eastern suburbs.
The campaign was managed by Michael Gross, Danny Clark and Glenn Ye of Gross Waddell ICR.
Scale and Income Security Drive Buyer Demand
Situated on a substantial 8,076sqm landholding across five titles, the asset comprises a prominent large-format retail centre supported by a diversified tenancy profile.
The centre is anchored by a range of established occupiers, including:
- Genesis Gym
- Legend Billiards Club
- Handcrafted Kitchens
- Europe Auto Imports
The combination of secure income, tenant diversity and significant underlying land value proved highly attractive to investors throughout the campaign.
According to Michael Gross, the result demonstrates the ongoing demand for large-scale retail assets offering both income and long-term value.
"Opportunities of this scale are increasingly difficult to find, particularly within established metropolitan locations," Mr Gross said.
"Buyers were attracted to the combination of strong fundamentals, diversified income and significant underlying land value."
Strong Competition Across Local and Offshore Markets
The sales campaign attracted extensive interest from both Australian and international buyers, highlighting the depth of capital currently targeting quality retail assets.
Danny Clark said investors continue to prioritise properties that provide income security alongside future flexibility.
"The depth of enquiry received throughout the campaign demonstrates the continued appeal of well-located retail investments," Mr Clark said.
"Assets that offer scale, quality tenancy profiles and strategic positioning continue to outperform and attract competitive buyer interest."
Offshore Capital Continues to Target Melbourne
According to Glenn Ye, the transaction further highlights the growing influence of offshore capital within Melbourne's commercial property market.
"International investors continue to view Melbourne as a highly attractive destination for capital deployment due to its transparency, stability and long-term growth prospects," Mr Ye said.
"We received strong offshore enquiry throughout the campaign from groups seeking sizeable investment opportunities with secure income and strong underlying land value."
Mr Ye added that the level of offshore competition reflects continued confidence in Melbourne’s retail sector, particularly for assets offering scale, diversified income streams and exposure to established growth corridors.
Eastern Suburbs Retail Remains in Demand
The result reinforces the ongoing strength of investor appetite for high-quality retail investments across Melbourne’s eastern suburbs.
With large-format retail centres of this scale becoming increasingly scarce, assets that combine substantial landholdings, diversified tenancy profiles and long-term investment fundamentals continue to attract strong competition from both local and international buyers.
