Gillon Group is about $40 million richer after selling two prominent sites in bayside Melbourne – the patch where the local developer has built its reputation and portfolio  during the decade.

In the biggest deal, which was conducted off market, Gillon Group is believed to be pocketing about $35 million from the sale of 33 Jack Road and 9-41 Charlton Avenue in Cheltenham to Mirvac. For years a furniture factory, the parcel is expected to make way for about 300 townhouses.

In Mornington, behind the Main Street retail strip, Gillon Group is pocketing $6.2 million from the sale of a 6194 square metre block with residential redevelopment potential. Across from the Mornington Central shopping centre, 2 Philip Street and 9-11 Gordon Street were offered with a permit for 45 townhouses.

Selling agents Dominic Gibson and Steven Messina, of Melbourne Acquisitions, declined to comment about the Cheltenham campaign, which was conducted privately. The duo marketed Gillon Group's Mornington site publicly.

Truganina site may fetch $80m

An as-yet undisclosed investor is reportedly in exclusive negotiations to buy a landmark industrial facility in Truganina for more than $80 million.

Goodman Group received state government permission to fast-track construction of the Kmart Distribution Centre at 2-12 Banfield Court in 2010. On a 36.1-hectare block, the property includes a 76,938 square metre factory and is fully leased to Kmart until 2026.

Kmart pays annual rent of $6.1 million to occupy the state of the art logistics facility. Jones Lang LaSalle's Matt Ellis and Michael Fenton and Colliers International's Nathan Bingham and Tony Iuliano are marketing the landmark Melbourne industrial property.

CR Kennedy becomes developer

Photography and filmmaking supply giant CR Kennedy is playing property developer, starting construction of a light industrial project behind its swank office on Port Melbourne's waterfront.

CR Kennedy's new project, The Wirra, includes 10 office warehouses accessed off Wirraway Drive. Ranging in size from 300 to 350 square metres, the workspaces, due for completion early next year, are being marketed by Bosisto Commercial's Glyn Bosisto and Tom Davis of Tom Davis Industrial Property.

Developer Salta built CR Kennedy's 300 Lorimer Street office in 2001 for skater fashion house Globe. The building enjoys north-facing water views and  close-range aspect views of the CBD, which is a short walk away.

In 2011, CR Kennedy sold its outgoing Chapel Street, South Yarra, site to local developer Michael Yates for $19 million. Yates subsequently split the site in two, recently selling one part – with a valuable apartment permit – to an overseas developer for a price speculated at more than $30 million.

Miliel buys St Georges Road South

Burgeoning local developer Milieu Property has snared another inner-city site, this time in Fitzroy North.

The former Carlton Motors workshop at the corner of Nicholson Street and St Georges Road South will now make way for flats. The 670 square metre block is immediately north of St Brigids Catholic Primary School and Church at the intersection of Nicholson Street and Alexandra Avenue – the busy thoroughfare connecting the Eastern Freeway to Citylink.

Castran Gilbert's Paul Castran and Michael Lang marketed the Fitzroy North block with a permit for a four-storey residential complex containing 24 flats and 14 basement car parks.

Milieu is backed by ex-BPM developer Michael McCormack, Ross Troon and Simon Peach. The boutique builder recently launched an apartment complex opposite the Fitzroy Town Hall that will replace a low-rise office until recently part-occupied by Down Syndrome Victoria.

 Baby Buntings sold for $6.8m

A Baby Buntings superstore in ritzy Hawthorn has sold to an investor for $6.8 million.

The 1536 square metre space, being the ground floor of the Atria Apartment complex at 291-311 Burwood Road, was only recently leased by Baby Buntings, which had outgrown its popular Balwyn store after 20 years.

Based on the annual rent of $514,000 Baby Buntings pays, the asset sold on a yield of 7.6 per cent. The investment has 118 metres of street frontage, being on the corner of Golding Street.

Atria Apartments is a low-rise complex developed a few years ago by local outfit Caydon. In recent years this developer has focused on towers of 20-plus levels in St Kilda and Flemington.

CBRE's Rorey James, Justin Dowers and Mark Wizel sold the Baby Buntings leased asset for Caydon.

Metro buys factory

Queensland developer Metro is the mystery $7.5 million buyer of a 7879 square metre factory surrounded by peaceful parkland.

Metro is expected to replace the Robbs Road block with about 50 three-bedroom townhouses priced below $600,000. Directed by, among others, Devine Group founder and ex-chief David Devine and BRW Rich List entrant Luke Hartman, Metro has been one of this year's most active Melbourne buyers, sellers and developers.

The Footscray West site is the eighth national purchase by Metro this year. The group has seven active projects in Victoria and 35 nationally.

It recently listed for sale former Uniting Church-owned blocks in Ivanhoe East and South Yarra, acquired as part of a fire-sale portfolio late last year.

$3.6m for Republic Tower space

An investor is paying a speculated $3.6 million for a ground floor and basement premises leased to the exclusive Quanjude Peking Duck Restaurant.

The 733 square metre strata retail property within the Republic Tower at 299 Queen Street is leased to Quanjude with options until 2022. The China-based restaurant, established in 1864, has dozen of affiliate eateries – the Melbourne restaurant one of the newest within the portfolio.

CBRE's Tom Tuxworth, Ed Wright and Nick Lower marketed the property.

Tatts Sells The Point, Caroline Springs

Tatts Group – which last year relocated headquarters from Melbourne to Brisbane – has offloaded a popular western suburb hospitality venue purpose built for tenant AFL club Collingwood.

The gambling giant is understood to be collecting about $10 million from the sale of "The Club" facility at 1312-1322 Western Highway, Caroline Springs – a deal reflecting a yield of about 7.5 per cent.

Tatts bought the modern venue in 2004 – five years after the master-planned township was established. Publican Andrew Nikakis, who also owns the Rosebud Hotel, is the purchaser.

The Caroline Springs asset is a big revenue raiser for Collingwood, which a couple of years ago successfully lobbied authorities to increase the permissible number of poker machines to 66.  The asset, on a hectare of land, includes 10,450 square metres of lettable area.

Licensed to trade until 3am, the facility is also a Returned & Services League sub branch.

The AFL club owns similar pokies-based venues in Lilydale and Ringwood – where the local council once criticised Collingwood for not investing the venue's profits locally.

Jones Lang LaSalle Hotel vice-president Mathew George and Mitchell Humphries represented Tatts Group.

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