Seven businesses have committed to major new Melbourne warehouses including Cadbury parent Mondelez which will cross town.
Six signed up with Centuria, via Cadence, for the Southside business park, which just opened at Dandenong South.
The deals covered 40,529 square metres, filling the 8.1 hectare estate before practical completion.
Cadence built Southside speculatively at 95-105 South Gippsland Highway – a site it acquired early last year for $14m.
Led by Charlie Buxton, the group sold the asset on a funds-through basis shortly after to Centuria Industrial REIT (CIP) – which outlaid $88.8m.
Both investors have since sought to lease it.
Orora is taking the biggest space – unit one – which contains 13,610 sqm.
San Miguel Yamamura Australasia Group, which like Orora is a packaging company, but also a contract wine filler, has rented 10,380 sqm.
The land formerly accommodated the Dandenong Car Wreckers and Foresight training centre.
“CIP capitalised on a rare opportunity to bring to market additional supply of industrial real estate within Melbourne’s land constrained southeast industrial heartland, where vacancy is currently 0.8pc,” CIP fund manager and Centuria head of Industrial, Jesse Curtis, said.
“The strong leasing take up is testament to Centuria’s leasing capacity and the quality of our asset, which has been developed to leverage the continuing demand for well located urban infill industrial assets,” he added.
“Additionally, the property’s strong sustainability credentials lend themselves to those tenant customers who are conscious of ESG,” according to the executive (story continues below).
Mr Buxton said industrial space is at a premium in Melbourne’s south east.
“To completely lease an estate of this size prior to practical completion not only speaks to the quality of the development but also the high demand for industrial infill space,” he added.
Last month we reported the Lunar drive in theatre, neighbouring Southside, hit the market as an industrial development site carrying a c$45m guide.
Dandenong South is 31 kilometres from town.
Mondelez crosses town
Meanwhile, Cadbury parent Mondelez will relocate from Dandenong South to Truganina, in the city’s west, after pre-committing to a 42,774 sqm LOGOS warehouse at 90 Palmers Road.
The initial lease term is 10 years. Completion is scheduled in mid-2024.
About a third of the complex will adopt ASRS (automated storage and retrieval system) technology.
LOGOS will construct the asset on a 15.92ha site acquired for c$40m-ex GST last year.
Mondelez will move from 14-28 Ordish Rd.
Spreading 28,189 sqm, that asset is owned by CapitaLand which we reported last week secured an Arndell Park, Sydney, industrial lease with a transport group.
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