Poly’s move will consolidate its ownership of a large, 8 hectare, prime development site on the corner of Springvale Road.
Last year, the group paid $88 million for Hewlett Packard’s 5.68-hectare Forest Hill campus, which is next door to its latest purchase. At the time, the deal was described as “staggering” because of its 3.6 per cent yield. Now, the group’s foresight makes sense.
The new site at 347-351 Burwood Highway is opposite the Tally Ho Business Park and surrounded by residential properties.
Poly’s consolidated holding has a flexible commercial one zoning and could incorporate medium and high-density housing development beside the commercial buildings.
Median house prices in Forest Hill are about $900,000 and the suburb is a major growth area surrounded by strong office markets in Glen Waverley, Burwood and Vermont.
The outer east office market has bounced back after a period of high vacancy.
Colliers estimates vacancy for the area is currently 8.74 per cent, below the long-term average of 9.56 per cent.
The area has seen other recent notable deals.
Opposite the Hewlett Packard site, the private business arm of Teo Tong Lim – the group managing director of Singapore’s Tong Eng Group – purchased the Country Fire Authority’s headquarters in Tally Ho park for $18.08 million in 2017. Another CFA-occupied property at 16 Lakeside Drive sold for $9.6 million.