Hardware group buys gateway Tullamore block
Pinnacle Hardware, which manufactures DIY and home storage products, has snapped up three sites abutting the northern entrance to ESR’s soon-to-be developed Tullamore Business Park.
The off-market deal, negotiated by Colliers’ James Stott, also involves the design and commissioning of a 15,000 square metre office/showroom/warehouse – in this instance to Corplex.
The agent said the Cranbourne West project should be complete by next March and have an end-value of more than $25 million.
Pinnacle will relocate from Keysborough, an established and pricier industrial area where it has been based five years.
Pinnacle’s new HQ
The industrial facility is earmarked for a 2.9 hectare parcel including 45, 47 and 49 Whitfield Boulevard.
The blocks neighbour ESR’s 78.8ha estate, replace the Tullamore farm acquired from the Kelly family last year.
Mr Stott said Pinnacle’s property will be the region’s largest A-grade facility.
As well as the warehouse it is designed with a gym and 1500 sqm office which will act as its headquarters.
“Investing in our business, in particular our supply chain and logistics model to not only harness the growth we are currently seeing across our sector but also the long-term growth we are confident in seeing across our business is critically important to us and something we had been reviewing for some time,” Pinnacle national operations manager, Allen Cheng, said.
“Following a careful site selection process and the identification of Cranbourne as a growing logistics hub we are excited to partner with Corplex to see this world class facility come to life” (story continues below).
South east growth centre: developer
Corplex general manager, Business Development, Darren Paziotis, said “in only a few years this precinct has become the new growth centre of the south east, catering for many organisations like Pinnacle Hardware who have outgrown their existing premises”.
Mr Scott added “the transaction heralds a change in mindset in the south east with increasing focus from corporate occupiers and developers toward growth locations, like Cranbourne, that offers easy access to Melbourne’s major infrastructure networks and presents significant value based on increasing costs in Dandenong and Keysborough associated with shrinking supplies of zoned industrial land”.
Dandenong only has 2.5 years supply left: Colliers
Soon – within 2.5 years if the annualised take up is 60ha – Dandenong South and Keysborough are poised to be fully developed precincts and will have no undeveloped industrial zoned land left, according to Mr Stott.
There is currently 155ha available across the core south east which is largely owned by four groups: Salta, Frasers, Pellicano and Goodman, he added.
“We expect other developments like the acquisition of Tullamore Business Park – a 79ha parcel of land that has been acquired by institutional developer ESR for a business park with a $450m end-value – to further increase interest in Cranbourne with the first built-form offerings to be delivered in 2022/2023”.
According to Colliers the average price per square metre of serviced land in Dandenong (on an assumed hectare parcel) is $500-$550.
At Cranbourne the rate is $350-$425.
The differential is greater for unserviced sites – $400-$450 psm, compared to $200-$300.
