Textiles group Gale Pacific Limited has leased half of a Braeside warehouse which Frasers Property Australia is building speculatively on a site (pictured, top) it acquired from billionaire businessman, Lloyd Williams, last year.
GPL will occupy 10,643 square metres of the 19,886 sqm complex at 2 Beyer Road following a deal negotiated by Colliers International’s James Stott and Gordon Code.
The agents estimate that the asset, once complete and fully leased, would be worth about $29 million.
The deal come a month after FPA signed ASX-listed IVE Group as tenant for a 14,144 sqm office/warehouse within the 23-hectare Braeside Industrial Estate.
This building, expected to have an end value of $21 million upon completion, is just over twice the size of the Keysborough property IVE Group will vacate (the Keysborough site in Atlantic Drive is, coincidentally, owned by the Frasers Logistics Trust).
Anthony Maugeri, FPA’s general manager – southern region, said upon striking the IVE Group deal that “strong interest is coming from occupiers in and around the Braeside and Bayside areas who recognise the benefits associated with the proposed Mordialloc Bypass”.
He added that the environmental credentials of the building “will significantly reduce energy and water costs for IVE Group”.
Braeside Industrial Estate is located on the corner of Governor Road and the proposed bypass.
FPA paid racing identity and developer Mr Williams about $19 million for the parcel of land earmarked for the industrial park, last February.
Six months ago, we reported that FPA paid $40 million for a 63.4-hectare slice of Industrial zoned land in the northern Melbourne suburb of Epping. FPA expects to build more than 250,000 sqm of industrial space on the site.
It estimates the end-value of property it will build at Epping will circle $250 million.
In September, FPA sold a fully-leased office/warehouse at 23 Scanlon Drive, Epping, for $15.7 million – well over its book value ($11.7 million).
Last May, FPA paid Vaughan Constructions about $37 million for an industrial investment under construction in Truganina, in Melbourne’s west.