In an unusual property play, Citipower had to compete against developers for the Fishermans Bend site which ballooned in value in mid-2012 when former planning minister Matthew Guy rezoned the area for high density apartment redevelopment.

The price Citipower paid per square metre of land – $5752 – was substantially higher than the $4193 per square metre paid a few weeks ago for the site next door, which was also offered with a valuable permit for 1300 flats.

Mr Donovan bought his 4066sq m industrial holding at 90-96 Johnson Street for $525,000 in 1992 as an investment.

When Citipower's lease was due for renewal last year – property values were such that Mr Donovan could reasonably multiply the asking annual rent to about $1.1 million. Prior to the rezoning, it was reported the site was collecting about $168,500 per annum, from Citipower.

The parcel is within one of the most flexible pockets of the Fishermans Bend urban renewal zone.

Next door, at 60-82 Johnson Street, developer Mario Salvo recently paid $41 million for a one-hectare block permitted to make way for four towers, including two rising 46 and 43 storeys, at present Fishermans Bend's tallest proposed skyscrapers.

South of the Citipower site is 112 Munro Street, a 2023sq m triangle-shaped block that listed miner SRG sold last year for $8.1 million following a campaign which also targeted residential developers.

Last month, a Fishermans Bend office complex at 18-22 Salmon Street, Port Melbourne, sold to developers for $27.5 million reflecting a substantial capital gain for the syndicate which bought it in 2013 for $12.1 million as a passive investment.

Agents Chris Kombi and Paul Burns represented Mr Donovan, who is still officer-in-effective control for the Fitzroys commercial real estate agency. The agents declined to comment about the deal which was finalised just before Christmas.

When the site was listed last May it carried price hopes of more than $16 million.

Cashed-up food entrepreneur's Broadmeadows buys

A syndicate including Hudson Pacific Corporation founder Ken Skoullos and its former chief executive, Frank Karkalos, have paid a speculated $10 million for a high-profile office complex beside Broadmeadows train station about 16 kilometres north of Melbourne.

Two low-rise office buildings occupy the Pascoe Vale Road block, which offers medium-term redevelopment potential.

On a fully let basis, the property has the potential to generate about $1.35 million in annual rent. It therefore traded on a high market yield of about 13.5 per cent.

At present, the asset returns about $1.2 million a year from nearly 20 retail and office occupants. Gray Johnson's Matt Hoath, Cushman & Wakefield's Patrick O'Callaghan and KYPA Property's George Kypriotis marketed the site.

Mr Skoullos arrived in Australia from Cyprus as a refugee in 1977 later establishing his multimillion-dollar business in Tullamarine.

Hudson Pacific, which controlled brands including El Toro and Fina Foods, was sold to Gold Coast-based Retail Food Group for $88 million last year. RFG's stable of products includes Donut King, Brumby's, Crust (pizza) and Michel's Patisserie.

Chemist Warehouse offers ex-HQ

The multimillionaire owners of Chemist Warehouse are offering their former headquarters abutting Merri Creek, in Reservoir, for sale or lease.

The substantial 7712sq m land holding includes more than 7000sq m of office and warehouse space.

About five years ago it was reported this site may be the replacement for the Pipeworks Market, which was to move from nearby Campbellfield.

Killen Thomas agent John Camilleri is acting for Chemist Warehouse to sell or lease 274 Edwardes Street. The fast-growing pharmacist has moved its headquarters to Raglan Street, Preston.

Chemist Warehouse is controlled by the family of Jack Gance and Mario Verrocchi, who are also part of the Home Consortium syndicate of investors which last year paid $830 million for control of more than 60 Masters' freeholds and 20 leaseholds.

In late 2014, Mr Verrocchi paid members of the Smorgon family $19.2 million for an Orrong Road, Toorak mansion – upgrading from Caulfield North.

Sydney businessmen sell South Melbourne office

Sydney businessmen Shane Higgs and John O'Neill have sold a small office building in South Melbourne's Tope Street.

Mr Higgs was the former publisher of The Melbourne Times. He previously developed an office at 30 Russell Street in the CBD. Mr O'Neill, a board member of Melbourne charity Adopt Change, with Deborra-Lee Furness, is also chairman of Surfing NSW.

The two level, 360sq m building between Kings Way and Albert Park Lake was expected to sell for more than $1.75 million following a campaign by CBRE's Nick Lower and Tim Last.

Charter Hall buys Dandenong South asset

Charter Hall is paying Suez Australia – which maintains the brand name Sita, a recycling and waste management giant, close to $8 million for an investment grade industrial asset in Dandenong South.

The enormous 1.9-hectare holding is near the junction where the South Gippsland Freeway merges with the Dandenong Bypass and Pound Road. It is also a short distance to the Eastlink and the Monash Freeway – providing car access to the CBD in just over half an hour.

At 64-84 Waterview Close, the offering, 40 kilometres south-east of the CBD, includes a purpose built office and warehouse complex containing 2767sq m of lettable area and a large car park.

Suez offered the site with a long lease, though the rental figure it would pay was not disclosed in advertising. As such a yield is not yet available. Assuming Charter Hall purchased the property assuming an 8 per cent return, the Sydney fund manager can expect rental of about $616,000 per annum.

Reece Distribution Centre abuts Charter Hall's new property. A new industrial subdivision is also happening across the road.

Outside of the inner city, Dandenong South is one of Melbourne's most valuable industrial pockets – in part driven by the shortage of land compared to other established trade areas, in Melbourne's western and northern suburbs.

Late last year ASX listed Goodman sold an industrial site nearby for $10 million. The one-hectare property at 31-49 Nathan Road, with 9991sq m of warehouse space and a 450sq m office, sold to health food manufacturer Nutribiotech Australia Pty Ltd after a Bing Property Group campaign.

Email: marcpallisco@gmail.com

Twitter: @marcpallisco