Dulux head office paints a $25m picture for investors
A landmark Clayton building home to Dulux headquarters is expected to appeal to a palette of commercial investors after landing on the market.
The prominent red and yellow property at 1948-1962 Dandenong Rd, currently owned by development company Salta Properties, is expected to sell in the vicinity of $25 million.
It marks only the second metropolitan Melbourne office sale campaign above $20 million this year, according to CBRE agent Scott Orchard.
Commercial Insights: Subscribe to receive the latest news and updates
A low-rise office building at 19-23 Prospect St, Box Hill sold for $20.76 million in March, according to CoreLogic data.
Dulux, which leases the entire Clayton property, is the subject of a takeover bid by Japanese company Nippon Paint.
But the site, built as the paint company’s corporate headquarters in 2007, will remain leased to Nippon should the takeover be finalised, Orchard says.
Dulux chief executive officer Patrick Houlihan at the building before its 2007 opening.
“Dulux has still got an obligation to the lease as it stands,” he says.
“It’s only going to become more appealing to an investor because Nippon is much more significant.”
The striking four-floor building boasts 5732sq m of office space on a street corner frontage of 168m.
“The Dulux House opportunity is a very exciting one for office investors as the property is well positioned to benefit from projected jobs growth,” Orchard says.
CBRE agent Lewis Tong says the property has future upside for potential buyers.
“Investors are telling us that they are looking for quality office assets that they can hold with confidence for the medium-long term, but also those that have flexibility and angles for adding value,” he says.
Salta recently partnered with Abacus Property Group to develop a $230 million office complex in Richmond.
Headed by managing director Sam Tarascio, Salta also developed Victoria Gardens Shopping Centre in the busy inner suburb.
This article from Leader Newspapers originally appeared as “Dulux headquarters: landmark Clayton building for sale”.
