Frasers Property Industrial has secured another tenant at its Braeside Industrial Estate, under construction on a 23 hectare site picked up from businessman Lloyd Williams’ Hudson Conway in early 2018.
DKSH Australia, an Asia Pacific focused market expansion service provider in the healthcare sector, has leased a 6823 square metre space (outlined, image, top) with a 422 sqm A-grade mezzanine office and warehouse with two recessed docks and a super awning.
The tenancy forms part of a bigger building – the third at Braeside Industrial Estate which FPI decided to build speculatively.
Last September PUMA Australia committed to 14,110 sqm of the same facility.
Braeside is 25 kilometres south east of Melbourne.
Building spec in Braeside is working out for FPI: agent
Just over a year ago FPI secured textiles giant Gale Pacific to another speculatively built Braeside office-warehouse: the tenant will fill 10,646 sqm, or 54 per cent, of 2 Beyer Road.
Last March, ASX-listed IVE Group also committed to a Braeside Industrial Park asset.
The estate will abut the Mordialloc Bypass, an arterial road the government started building seven months ago and which is due for completion late next year.
CBRE state director, Advisory and Transaction Services, Industrial & Logistics, James Jorgensen, who placed DKSH Australia said Frasers “has been the most aggressive developer in Melbourne’s south-east market when it comes to speculative buildings” and “this is another prime example of that strategy working for them”.
“They are continuing to spec develop even in this COVID-19 climate”, the broker added.
Outside of the inner city, the precinct classified by Melbourne industrial agents as South East – where Braeside is located – is considered the most expensive in which to buy or rent, largely because supply will run shorter before it does in areas defined North and West.
Last year FPI paid $80 million for a 41.3 hectare development site in Dandenong South, nine kilometres east of Braeside, saying at the time that it would also start speculatively build warehouses on it.
It could be the case COVID-19 won’t be a setback for the builder; Mr Jorgensen saying this week that after months “of silence”, rental enquiry for industrial stock in the precinct has significantly picked up.