Developers spend $15m on Epping industrial
Developers swooped on two industrial sites across the road from each other in Epping.
In the smaller deal, developer Peter Spargo banked $5.145 million for 181 Oherns Road, a 4926 square metre piece of a 1.4 hectare site which cost him $10.067m in 2021.
Local outfit Northgate Developments is the buyer; it is planning to proceed with a permitted business park, containing 11 strata units.
Colliers’ Corey Vraca and Mitch Purcell with Jones Real Estate’s Paul Jones and Tim Spargo were the agents.
Peter Spargo will develop a convenience retail complex with a 7-Eleven, Aporto and Starbucks on the balance of the land, at the south west corner of Edgars Rd.
181 Oherns Road
Eight offers came in for 181 O’Herns Rd.
“The lack of supply hitting the market in Melbourne’s north, coupled with a strong demand for well-located industrial land sites with great connectivity to road arterials, were active contributors to the high land rate achieved,’ Tim Spargo said.
Mr Vraca added “although the depth of buyers for land has reduced over the last 12 months, vacant sites supported by fundamentals such as key arterial access, high exposure and surrounding amenities are still being sought after by developers and investors.”
Elsewhere in Epping, Northgate developed a strata industrial complex with six shells on a site purchased four years ago.
MAB sells down 96ha Alliance
In a second recent deal, MAB sold the last piece of its Alliance Business Park, near the north east corner of Cooper Street and the Hume Freeway.
Covering 1.195ha, zoned Comprehensive Development, the buyer of the property, 622 Edgars Rd, is another local (story continues below).
The outlay was $10.994m. CBRE’s Daniel Eramo, Joe Brzezek, Jake George and Corey Le Favi were the agents.
A mixed use project is earmarked.
“The sale of the last lot signifies a strong result and marks the successful completion of the sales campaign,” MAB general manager, Commercial and Industrial, Michael Martin, said.
“[It also] demonstrates there is still solid underlying demand for well-located industrial land in Melbourne’s north, with good exposure and access to transport infrastructure,” he added.
The 96ha Alliance estate is expected to have a c$144m end value; Gallagher, Mainfreight and Storage King are amongst the occupiers.
It is also designed with a 3.6ha basin with a 700 metre walking track with cyclist and pedestrian access to the Craigieburn Bypass Trail, Mr Martin said.
Epping is 20 kilometres north of Melbourne.
Epping investment trades at record low yield
The deals come eight months since a private investor picked up 67 Gateway Boulevard for $8.94m, reflecting a 4.25pc yield – a record low for Epping.
On 8148 sqm, it contains a 3790 sqm office/warehouse leased to Automatic Heating Global.
Mr Brzezek and Mr Eramo represented the vendor, another private investor, who outlaid $3.975m in 2012 – a transaction which reflected an 8.5pc return.
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