The unusual transaction, referred to as a "fund through", will see the incoming owner effectively pay for the construction of, then retain, a distinctive eight-storey, 5600 square-metre commercial complex with 71 basement car parks, penned by Woods Marsh.

The 1031 square-metre parcel at 594-610 Church Street, on the south-west corner of Balmain Street, was the headquarters of butter manufacturer Nuttelex until recently.

Icon is reported to have paid $6.6 million for the property last year before obtaining the valuable permit to replace the low-rise brick building on the site.

Four months ago it appointed agents Peter Bremner and Rob Joyes of Colliers International with Andrew Dawkins and Walter Occhiuto of Dawkins Occhiuto to sell the site via an expressions-of-interest campaign.

The agents, who declined to comment about any deal, marketed the building with vacant possession and a price guide of "high $40 millions". Alternatively, it was offered with a five-year rental guarantee (the first-year return was set at $3.36 million) and the value was boosted to nearly $60 million. It is unknown which purchase arrangement the incoming owner has chosen.

Apart from investors, the opportunity was expected to arouse interest from owner-occupiers or developers who might consider reworking the permit, perhaps to allow for part-residential use.

Though not a "fund through" transaction, Cedar Woods in May sold a 1.1-hectare plot of land in Williams Landing as a new office investment to Centuria Property Funds for $58.23 million. Five months earlier the vendor had secured a 10-year lease with retailer Target for the proposed eight-storey, 12,919 square-metre workplace. Based on the rent Target agreed to pay, this asset traded on a 6.49 per cent yield.

Dahua Group reweights

Chinese developer Dahua Group is reweighting its portfolio, offering three subdivided portions of the King's Leigh housing estate it co-owns with the Dacland Group in Werribee.

Targeted to medium-density builders, the sites of between 1226 square metres and 4010 square metres are expected to reap a total of between $2.6 million and $3 million.

Cushman & Wakefield's Peter Sagar and Paul Callanan are marketing the plots, about 30 kilometres south-west of the city.

King's Leigh will see a 49.43-hectare plot at 220 Old Geelong Road subdivided into a circa-700 lot "upmarket" housing estate over the next three years.

Last week Dahua Group announced the purchase of two plots covering 113 hectares in Wollert, about 27 kilometres north of Melbourne. Agents speculate the builder is outlaying more than $140 million, based on the local land value of about $1.3 million per hectare.

End of an era in local agency

It will be the end of an era in commercial agency circles next month when broker Jonathan McCormack leaves Gross Waddell after 23 years.

The veteran has bought into the company of another revered agent, Stephen Gorman's Gorman Commercial, one of the city's largest privately-owned property management businesses.

"The opportunity for Jonathan to join and be director responsible for sales and leasing was extremely significant for both of us," Mr Gorman said. "His experience and market reputation will only strengthen our sales and leasing business to another level.

"I have always had a strong working relationship with Gross Waddell, which clearly works with the same principles and ethics that I run my business by."

Mr Gorman added that the companies expect to work together with many mutual clients.

Mr McCormack said he will continue to focus on the markets in which he has been prominent for two decades.

"Stephen has always maintained a healthy market share in his own right and, while he has created such a large management business, I will bring an expertise, particularly in growing sales," he said.

Mr McCormack leaves the city offices of Gross Waddell on December 1.

New South Yarra office plans

Another inner-city car rental showroom is set to make way for a substantially higher building, this time in South Yarra.

A site owner-occupied b Budget until recently has sold to a builder for nearly $5 million, reflecting a rate per square metre of more than $9000.

Despite being zoned Commercial 1, which allows the plot to be replaced with an apartment building, it is speculated an office complex of up to five storeys will replace 423-425 Malvern Road. Vinci Carbone's Frank Vinci and Joseph Carbone represented the vendor, a Budget franchisee.

New Dulux distribution centre

A major industrial lease pre-commitment to paint giant Dulux, worth $20 million, has been won by Mount Waverley-based developer Pellicano.

The deal will see an 18,000 square-metre state-of-the-art distribution centre built across two adjoining plots spreading 45,000 square metres on the corner of Bayliss Road and National Drive, Dandenong South, in the M2 Industry Park.

The new complex, which will replace an existing Dulux centre nearby on the South Gippsland Highway, is close to the ex-Bunnings warehouse recently occupied by global giant Amazon.

Savills director Lynton Williams did the six-month search for Dulux. The proposed new complex will include 600 square metres of office space and a 500 square-metre battery charge area.

Keysborough land fetches $16m+

A lucky family who bought 2.1-hectare holding in Keysborough in the early 1980s, when the immediate pocket was dotted with semi-rural homes, has cashed in after obtaining a redevelopment permit.

The rectangle-shaped vacant tract of land at 152 Stanley Road is changing hands for $16.1 million following a campaign targeting residential developers.

Numerous homes, part of new housing estates, are under construction in the immediate vicinity.

The selling agents of the Stanley Road site - Patrick Emini and John Sprakel of Century 21 Berwick - were marketing the land with permission for it to be subdivided into 40 lots.

Subject to approval, they added, this plan could be redesigned to include 50 smaller plots.

According to Domain Group data, four-bedroom homes in Keysborough, about 27 kilometres south-east of the city, carry a median house price of $864,000 and take an average of 42 days to sell.

Email: marcpallisco@gmail.com