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Continental Corporation to sell University Hill 'supersite'

Property Markets / Transactions

Australia

May 01 2017

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Melbourne, 01 May 2017 – Continental Corporation has moved to sell its purpose built facility in Bundoora’s University Hill precinct - marking the end of the company’s almost six-decade tenure in the region. 

Continental Corporation has appointed CBRE’s Dean Hunt and Daniel Eramo to steer the sale of its 2 Scholar Road property – a 16,520sqm mixed use facility comprising 4,941sqm of office space over three levels, a 9,574sqm factory area and car parking for 371 vehicles. 

Located on an island site of 33,190sqm, the facility was purpose built and used for Continental Corporation’s production, research and development operations, leveraging off the precinct’s skilled employment and associated amenity. 

The sale follows Continental Corporation's decision to cease automotive component manufacturing and related operations at the Bundoora plant by the end of 2017. The sale does not affect the operations of the Tyre and ContiTech Divisions, which will remain operational in Australia.  

The future location of Continental's head office in Melbourne will be announced once the sale is completed. 

CBRE’s Dean Hunt said the sale would attract significant interest given the limited opportunities to secure property in the location. 

“University Hill is one of Melbourne’s most successful, mixed-use land developments, with this site abutting or close to student accommodation, commercial office accommodation, child care, strata industrial units, car retailing, shopping centres and RMIT University,” Mr Hunt said. 

“Demand within the precinct is high and undersupplied - across all asset classes. This will underpin significant demand from investors looking to secure this trophy industrial asset, which is underwritten by a strong land value.” 

The property’s office component features a full height glass façade, while the connecting factory is designed to modern standards, with features including temperature control, lined walls, static free environment, specialised work rooms and high internal clearances. 

Significant power and gas supplies are connected to the property, along with alternative solar power technology, as well as additional services such as air line reticulation.  

Bundoora - located approximately 16km north of the Melbourne CBD – is an inner mixed use commercial precinct currently undersupplied. The limited supply and high demand has continued to support rental growth, with rents ranging from $900 - $600 per square metre for smaller to medium sized allotments. 

CBRE’s Daniel Eramo said the property had significant appeal to a wide range of groups given its sought after location. 

“Owner occupiers will be drawn out of neighbouring inner markets such as Preston, Heidelberg, Reservoir, Coburg North, Thomastown, as well as specialised operators looking to capitalise on an existing fit out that is below replacement value,” Mr Eramo said. 

“Developers will look to take advantage of the strength of the precinct, which is one of the largest suburban office markets in Melbourne’s north. The existing 5,000sqm office can easily be converted to a multi-tenant building and further extension of this office into the factory/ warehouse.” 

Continental Corporation supplies brake systems, systems and components for powertrains and chassis, instrumentation, infotainment solutions, vehicle electronics, tires, and technical elastomers making individual mobility safer, more comfortable and more sustainable.

The property is being sold via an Expression of Interest campaign anticipated to launch shortly after Easter. 

 

About CBRE Group, Inc.

CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2016 revenue).  The company has more than 75,000 employees (excluding affiliates), and serves real estate investors and occupiers through approximately 450 offices (excluding affiliates) worldwide.  CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services.  Please visit our website at www.cbre.com.

 

SOURCE: Press Release

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