The former Carlton & United Breweries headquarters in Abbotsford is being brought to market in an Expressions of Interest campaign that concludes on the 5th of August. Brought to market by Fitzroys' Chris James and Paul Burns, this new commercial offering begs a wider discussion of Abbotsford, its changing identity, and the premises being presented to investors.
From industrial beginnings to now
Abbotsford has historically been an industrial precinct, particularly relative to its adjoining City of Yarra suburbs. Richmond and Cremorne are retail and service hotspots, and to the north and west lie suburbs like Collingwood, Fitzroy and Carlton, which are considered historically significant and thoroughly gentrified. In direct comparison, Abbotsford’s commercial offerings feel more industrially-inclined. But according to real estate agents working in the area, that’s changing.
“Abbotsford is one of Melbourne’s last city fringe suburbs with genuine unrealised development potential,” states Fitzroys' Paul Burns.
“The neighbouring Richmond and Cremorne markets have become ultra-competitive and Abbotsford is becoming highly-sought after by the large number of businesses looking for city fringe accommodation close to quality lifestyle amenity.”
2-6 Southampton Cres, 36 Bond St & 27-29 Duke St, Abbotsford VIC 3067
Whereas density in the abutting suburb of Richmond is high, Abbotsford is still in the process of reshaping itself from its industrial origins. Take the boutique Moon Dog Craft Brewery, home to the popular Australian beer brand of the same name, for example. With its warehouse aesthetic still intact, the site is fitted out with a homely and inviting interior refurbishment. Many of the hospitality endeavours in the area feel this way; pubs often possess the intimate qualities of an inner-city cocktail bar, whilst simultaneously retaining the exposed bricks and beams that you might expect of a factory.
The improvements in hospitality and retail amenity for the suburb are driving interest from businesses who are looking to relocate their offices to engaging and lively fringe suburbs. Developers are noticing these changes, and they’ve been taking advantage.
“The gentrification of Abbotsford has been recognised by experienced and quality developers such as Hamilton Marino, Forza Capital, Medley Group, and Banco Group, who all have office developments planned or underway in the vicinity,” Burns says.
The Forza Capital development is particularly notable; Forza purchased a carpark in 2019 on Grosvenor Street, and has since submitted a planning application to develop an 8,000 sqm, 6 star Green Star-rated office over the aforementioned carpark. The vendor for that property back in 2019? Carlton & United Brewery, no less.
2-6 Southampton Cres, 36 Bond St & 27-29 Duke St, Abbotsford VIC 3067
The former Carlton & United Brewery Headquarters
“The Abbotsford precinct is changing, and this building and permit will be a keystone to the heritage and the future of Abbotsford,” is the belief from Simon Manley, the General Manager of the vendor, developer Hengyi Group.
“We are taking advantage of the lack in permitted sites by sending Southampton Crescent to market.”
The sites on offer include 2-6 Southampton Crescent, 36 Bond Street & 27-29 Duke Street, which equate to a combined 3,099 sqm of land that lies directly opposite Carlton & United's famous Yarra River brewery. The 2-6 Southampton Crescent building currently has just over a quarter of its 6,048 sqm of net lettable area leased, to ASX-listed Starpharma. Additionally, the Duke and Bond Street land possesses a VCAT-approved permit for an additional 5,107 sqm, nine-storey commercial development. When fully developed, the property’s net lettable area will be 10,484 sqm.
Render for approved development at 36 Bond St & 27-29 Duke St, Abbotsford VIC 3067
“We’re expecting interest from value-add buyers, developers and owner occupiers,” says Mr. Burns. “The timing to secure this parcel couldn’t be more opportune.”
The purchaser will also have the opportunity to renew short or medium-term leases for the 36 Bond Street and 27-29 Duke Street warehouses to assess their options for the entire property. Overall, expectations for the property's sale price sit within the mid-$20 millions.
Abbotsford is in a transformative phase, embracing the rise of its office, retail and service sectors, and is poised to soon join its bounding suburbs in terms of density. As such, the emphasis is on developers and investors to seize these sorts of opportunities, before the area becomes as expensive and as competitive as its contemporaries.
