Ford lists enormous piece of Campbellfield plant
EXCLUSIVE
Ford has listed an enormous piece of its ex-Broadmeadows Assembly Plant and headquarters – actually in Campbellfield – with a two year part-leaseback.
The car giant can expect over $90 million, sources say, for the 15.9 hectare holding, Part 1731-1733 Sydney Road.
The parcel formed part of a distribution centre, storage facility and service garage, near a manufacturing plant which opened in 1959 and was predominantly occupied until seven years ago when the administration, sales and marketing departments undertaken there were relocated to Salta’s Victoria Gardens in Richmond.
Production ceased with a blue FG X Falcon XR6 in October, 2016.
Three years later, Ford sold a 40ha piece of its holding, Part 1727-1787 Sydney Rd, for a speculated c$82.1m to Pelligra Group which is now replacing it with an industrial estate, Assembly Broadmeadows, convenience retail and hospitality.
In late March, 2021, Qualitas tipped in $50m to become a half-share investment partner.
Following the sale of Part 1731-1733 Sydney Rd, Ford will retain a portion of the Campbellfield holding accommodating the APPDC (Asia Pacific Product Development Centre).
Another piece of car manufacturing history for sale
Pelligra Group also in 2019 bought Ford’s former Geelong engine making and stamping facility – like Campbellfield making way for an industrial estate, Fortek.
Two years earlier, the same group, led by Ross Pelligra, acquired General Motors Holden’s ex-Elizabeth, Adelaide, manufacturing plant, for a business park now known Lionsgate.
The Victorian government meanwhile, in 2016, paid GMH $130m for its outgoing Fishermans Bend manufacturing plant; spreading 37.7ha it is now earmarked for an innovation hub, with major skyscrapers, and a $2 billion-plus University of Melbourne campus.
Ford to leaseback chunk
Ford Australia will relocate the key function undertaken at 1731-1733 Sydney Rd – its spare parts distribution – to an 8.8ha facility at Somerton, two suburbs north of Campbellfield, owned by a Dexus backed trust backed by Singapore sovereign wealth fund GIC.
The car maker will lease back one of the three warehouses at Campbellfield – Building A, constructed in 1962 and extended in 1971 and 1976; with 31,871 sqm, also with a service centre and training facilities, starting annual rent is $2.7m (or $85 per sqm, pa) rising 3.5 per cent in year two (story continues below).
The other two factories – Building B, containing 14,633 sqm and last renovated in 1999, and Building C (completed in 1967, with 10,315 sqm) – are vacant.
All up the improvements cover 36pc of the site, which also has access to Link Drive, making it a straightforward development play, either via an extension or new build, according to CBRE marketing agents Daniel Eramo, Andrew Bell, Chris O’Brien and Dean Hunt.
Over 80,000 sqm of single level product could be considered, they added.
“As an additional consideration for potential purchasers, Ford is exploring options for a potential pre-lease of approximately 4000 sqm of…accommodation to be built onsite, facilitating the relocation and upgrade of its existing dealer training, service engineering and vehicle servicing operations” they said.
Campbellfied is about 16 kilometres north of Melbourne’s CBD.
The Sydney Rd block is c750 metres north of the Somerton Rd intersection.
Record low vacancy
Melbourne’s northern suburb industrial sector, of which Campbellfield is a major centre, carries a record low 0.7pc vacancy rate, according to Mr Eramo.
Also favouring landlords in the current market is rental performance – up 35.1pc for 2022 and continuing to rise this year – and a reduction in, or removal of, incentives.
The outgoing Ford property has 137m of frontage to Sydney Rd which in this part of town is also the Hume Highway.
“Situated within [the] mid-northern core, the high profile frontage delivers valuable land and building supply to a constrained market,” Mr Eramo said.
“The site offers incredible value-add and repositioning potential across existing improvements or a complete redevelopment opportunity in a highly sought after precinct,” he added.
“The potential dual access enhances development design flexibility as well as connecting at the rar to the [MAB Corporation’s] National Business Park and its infrastructure”.
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