Buyers spend $55m on south east Melbourne industrial
Two more major south east Melbourne industrial properties have traded.
In Dandenong South, fencing giant Whites Group has paid $31.5 million for a new 13,154 square metre office/warehouse on 2.35 hectares at 25 Glasscocks Road, to occupy.
The Sydney operator is presently based in the suburb at 64 Colemans Rd – a 6,329 sqm facility on 1.52ha.
“The buyer was interested in the site due to growing occupancy costs in New South Wales, which incentivised the group to focus on expanding its Victorian footprint,” Colliers’ Gordon Code, who marketed the asset with James Stott, Daniel Telling and Camerons’ James Roux and Angus Clark said.
“Instead of growing in New South Wales, they decided to double their base in metropolitan Melbourne,” he added.
The new property also has 298 car parks.
Last year Wales announced a distribution centre at Albury, at the New South Wales/Victorian border.
The group operates in New Zealand and the United Kingdom.
Last significant Braeside site sells
A little closer to town, in Braeside, Spectre Property and Hexa Group are paying a speculated $23 million for a 2.973 hectare Industrial 1 zoned block at 260-280 Governor Rd, also with frontage to Canterbury (story continues below).
A business park is planned.
“Braeside will mark an exciting new chapter…where we will continue to exemplify our group’s design-led principles and create another collection of state-of-the-art industrial business spaces,” Spectre’s Jason Grasso and Hexa’s Leon Liu, said.
The south east is metropolitan Melbourne’s most land constrained market with 2.24 years, or 227ha, of supply remaining, according to Mr Code.
The Governor Rd site was the last significant site in the suburb, he added.
Braeside is 25 kilometres from the CBD.
Dandenong South is about 10km east of there.
Last week we reported Assembly Asset Management and Cadence divested three Dandenong South investments for $47m – a premium on the $35.7m they paid in 2019.
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