Just 14 months ago Citius paid $40 million – or about $42.50 per square metre – for the rural land, which was earmarked for industrial rezoning. CB Richard Ellis senior director industrial and logistics services Shane Robb, who is marketing the land with Colliers International ‘s Tony Iuliano, said a rezoning to Industrial 2 is pending.
Industrial land values in every industrial precinct of Melbourne strengthened this year.
The sharp increase in western suburb land values was proved in July, when a joint venture between Folkestone and AMP Capital Investors sold a 52 hectare block of land in Altona for $37 million – or about $71 per square metre.
It agreed to buy the site, formerly occupied by Dow Chemicals, just nine months earlier for $25 million – or $49 per square metre.
The most recent industrial sale in the area was in Boundary Road Truganina, when ING acquired approximately 50 hectares of industrially zoned land in Boundary Road. That deal was reportedly struck at a rate of around $87 per square metre.
The Citius block is much larger which would affect the rate per square metre paid by developers, however industry averages suggest a rate of between $70 to $80 per square metre could be achieved.