ISPT spends big in Melbourne’s ‘Toorak of industrial’
ISPT, which earlier this year appointed a new leader, Chris Chapple, set to start in October, is speculated to be paying around $300 million for another major south east Melbourne industrial site.
The 62.42 hectare parcel at 265 Dandenong-Hastings Road, also known as 265 Western Port Highway, Dandenong South, has been touted off-market all year, according to local agency sources.
CBRE was the broker.
Vendor, Dr Leo Cantwell, held it since 1985.
Toorak of industrial
Dandenong South, which with Dandenong is Melbourne’s most valuable precinct outside of the inner city to buy or rent industrial product, is 31 kilometres from the CBD.
The deal for 265 Western Port Hwy comes a fortnight since ISPT outlaid $100m for a 78.9ha commercial development site at Officer South – about 30 kms east.
Also making a major play for an industrial building block in the growth corridor, is MAB, which in May spent over $75m for 45ha recently rezoned for development at 1550-1580A Thompsons Rd, Cranbourne East.
String of sales
An ISPT representative was unavailable to comment about the Dandenong South property, at the north west corner of Glasscocks Rd, also with frontage to Portlink Drive and Salta’s Nexus business park which is taking shape and will soon have an intermodal facility.
The deal comes four months since a 4.25ha warehouse in the suburb, 22-44 Brooks Drive, at the north west corner of Hammond Rd, traded for $34.4m, while a distribution centre on 1.69ha at 8-10 Healey Rd fetched $21m.
In May, ESR outlaid $15m for a 1.1ha industrial investment at 4 Healey Rd, Dandenong South, as part of a $106m spending spree which also included 9-13 Annick Crescent, Truganina (for $16.2m), 147-153 Canterbury Rd, Kilsyth ($22.2m), 321-327 Greens Rd, Keysborough ($25m) and two Turner St, Port Melbourne, blocks ($28.1m).
Those properties are being held in the EALP II, backed by Singapore sovereign wealth fund GIC (story continues below).
LOGOS invests in Eastern Creek
Meanwhile, LOGOS has paid pie maker Sargents $180m for a 26.7ha Eastern Creek, Sydney, industrial development site.
A c$500m business park is planned for the Archbold Rd property.
Savills’ Ray Trimboli said the off-market transaction is a testament to the strength of the sector, which is requiring on-demand delivery more than ever.
“There is significant pent-up demand in the market, particularly for prime industrial land in popular locations such as Eastern Creek which offers unrivalled access to greater western Sydney,” the agent added.
Active briefs – seeking up to 1.5 million sqm – are in the market, according to the executive.
“Despite the recent disruptions to economic recovery, ongoing challenges facing the supply chain, escalating energy and commodity prices, and a surge in inflation, the appetite from households for retail spending remains resilient,” Mr Trimboli said.
Sargents Charity, a philanthropic entity, was the vendor.
“Sargents has extensively developed land in the Minchinbury industrial area which is close to Eastern Creek and to its Colyton factory,” he added.
“In 1997, it constructed the industrial estate in Sargents Rd which is now home to a range of busineses including Woolworths, Aldi and Startack,” according to the executive.
With sale proceeds, the group will construct a factory at Lot 5, Archbold Rd, Minchinbury.
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