No trash, all treasure for buyer of $15m Thomastown market site

It’s probably the biggest transaction ever haggled over at the Thomastown Trash and Treasure Market. A developer has snapped up the largest part of the site for more than $15 million.

The days of traipsing between tables of junk and old tools could be numbered with the buyer understood to be a joint venture between two developers with experience in large format retail and office-warehouse projects.

The 2.49 hectare piece of land is at 26 Wood Street, alongside another two smaller parcels at 261 and 267-273 Settlement Road, which remain on the market.

Records show the vendor is Middendorp Electrical Co. The site has two short-term tenants, and returns $155,224 a year in rent.

GrayJohnson agent Matt Hoath, who negotiated the deal with CBRE’s Daniel Eramo, said the two-round campaign drew widespread interest from a diverse pool of buyers, including owner-occupiers, institutional developers – and even offshore interest, including a significant bid from a Chinese buyer wanting to secure the entire estate.

“While the smaller, more unsophisticated end of the market is currently showing some nervousness due to financing constraints, wealthy private buyers and corporate developers are making moves. They recognise it is a strategic time to buy high-quality, well-located land,” Hoath said.

“When everyone else in the media is talking doom and gloom, this campaign proved the exact opposite. Buyers are steering away from smaller man-cave style developments, which have fallen out of favour, and are heavily focusing on prime industrial assets that support long-term business growth.”

Ryman Healthcare’s Melbourne expansion plan has shrunk again with the $30.85 million off-market sale of its Kealba site in the north-western suburbs.

The price is shrinking too. In 2022, Ryman paid $38.5 million for the 6.07 hectare former high school at 27 Driscolls Road and announced plans for a $155 million integrated aged care complex.

Ryman, which is dual listed on the Australian and New Zealand share markets, was on a buying spree in the early 2020s with plans to roll out seven more centres to add to its existing seven. The strategy has been trimmed to five sites, including Essendon and the former Daisy’s hotel and nursery in East Ringwood.

Ryman started construction on the Ringwood site in 2022 when it halted the work with no explanation. A former defence clothing factory on Gaffney Street, Coburg is for sale.

Ryman told Capital Gain it is keeping sites “with the strongest potential for future development” but selling those which “may deliver greater value for shareholders