Banco Pays $5m For Factory Site In Coburg

The Age

Wednesday July 30, 2008

Chris Vedelago

THE Banco Group has paid about $5 million to MAB Corporation for a 2.24-hectare development site in Coburg formerly occupied by Nylex Industries.

CB Richard Ellis associate director Dean Hunt, who negotiated the sale, said Banco planned to redevelop the site at 102-106 Gaffney Street into an industrial estate rather than use an existing permit that allowed for a 10,800-square-metre homemaker retail centre.

The former Nylex Industries facility comprises six factory/warehouse buildings covering 14,985sqm, although it is not clear whether they will be incorporated into the project or demolished.

The first stage of the project will create 11 buildings - offering industrial spaces of 200 sq m to 5000 sq m - that could be for lease or purchase. The second stage will involve multi-unit storage sheds targeted at owner-occupiers.

Mario LoGiudice, director of the Banco Group, was unavailable for comment.

Philip Soumilas, MAB's general manager of commercial and industrial, said the Gaffney Street site was sold because plans to acquire more land in the area for an urban renewal development did not pan out.

The sale coincides with an increase in redevelopment in the northern corridor, with Moreland Council announcing last month that it would partner with the Equiset Grollo Group in a planned $1 billion urban regeneration project.

The Coburg Initiative is expected to transform about 12 hectares around the intersection of Bell Street and Sydney Road into an activity centre comprising 65,000sqm of office and retail space, 1500 residential units and an underground railway station.

Work is also well under way on the homemaker centre that Baron Corporation is building next to the Nylex site, which has commitments from Bunnings, Clive Peeters and Officeworks.

© 2008 The Age

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