Noble Park supersite hits the market
A major industrial investment with development upside at Noble Park North – between Springvale and Dandenong – has hit the market.
With four adjoining warehouses containing 13,502 square metres – about 10pc of which is offices – and 52 basement car parks, the property has been leased to Oji Fibre Solutions, formerly known as Carter Holt Harvey, for over 20 years.
That business still occupies, on a lease expiring in 2027 with a two-year option.
After that, the 1.95 hectare holding could be considered for redevelopment, with the potential for the existing buildings to be extended or subdivided or knocked down and replaced with a business park or large, single asset.
Multi-level buildings could also be contemplated – the property being in the Greater Dandenong municipality and near Dandenong, which has a sub one per cent industrial vacancy rate and limited land available for redevelopment.
Lemon Baxter’s Chris Chartres and Paul O’Sullivan are the agents.
While there is no guide, local investments have been selling at six per cent yields, which would price 440 Princes Hwy at $16-$17 million.
“The property is leased to one of Australasia’s leading manufacturers of pulp, paper and wood-fibre based packaging solutions,” Mr. O’Sullivan said.
“The long-term lease agreement further demonstrates the tenant’s commitment to the property and highlights its reliability as a secure and lucrative investment opportunity,” he added (story continues below).
Development upside
About 27 kilometres south east of the CBD, Noble Park North neighbours Dandenong, Melbourne’s most exclusive industrial precinct outside of the inner-city.
The suburb is also near the spaghetti junction connecting the Monash Freeway to Eastlink, at Dandenong North.
“This strategic location allows for effortless accessibility to major arterial roads, making it a highly desirable commercial location,” Mr. O’Sullivan said. “The location is further enhanced by its proximity to local amenity including major food retailers and retail, lifestyle, education, healthcare, parklands and Noble Park train station”.
Elsewhere in the suburb, in 2020, Quintessential Equity sold an industrial investment at 180 Browns Road for $14.7m – more than twice the ($6.8m) price it paid Boral in 2013.
Also, three years ago, AFR Rich 200 member the Hannan family banked $15.06m from a warehouse, 504-520 Princes Hwy, which had not long earlier been vacated by PMP Group.
Several major projects are underway at Dandenong and Dandenong South too including an intermodal terminal – about four kilometres away from 440 Princes Hwy.
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