Nolan Group will consolidate several south east locations, including its Dingley Village headquarters, to a Dandenong South office/warehouse (artist’s impression, top) due for completion late this year.
The textiles supplier has signed a seven year lease for a 7961 square metre component of a building Frasers Property Industrial began constructing speculatively a few months ago, within the Rubix Connect estate.
About 6.5 per cent (520 sqm) of the property will be configured with offices, while the warehouse, accessed from three recessed docks and four on-grade roller doors, has an 11.5 metre clearance.
The tenancy includes 71 car parks.
Savills’ Colin Talarmis, who brokered the deal with Scott Nienhuis, said the Dandenong area is set to benefit from direct access to the Port of Melbourne care of an Intermodal terminal Salta is co-developing, due for completion next year.
Several major institutions and syndicates have recently snapped up Dandenong South assets, amongst them Aliro Group, which paid $19.8m for a 2.42ha investment at 269-271 Frankston-Dandenong Rd, Assembly Funds Management (which last year paid private investor David Feldman $25m for two assets, and last month purchased another property in the suburb with a leaseback to Aussie Disposals) and Centuria.
According to Colliers research, the Dandenong/Dandenong South area has about 140ha of developable, corporate owned land.
Of this, four developers, FPI, Goodman, Pellicano and Salta, control 90 per cent.
Economies of scale, room to grow: Nolan
Rubix is taking shape on a 41.3ha parcel at 875 Taylors Road which FPI acquired for c$80m in 2019.
The estate was launched last August – with a pre-commitment to Ozito, for 18,000 sqm.
In February, Zenexus agreed to rent a 15,000 sqm facility within the business park (story continues below).
efm Logistics followed, leasing 15,580 sqm space (Nolan’s office/warehouse will share a roofline with this structure, on Fox Drive, near the north east corner of Discovery).
Nolan director of Operations, Warren Wild, said the Rubix property will create economies of scale and facilitate the company’s anticipated growth.
Another speculative lease deal
The Nolan deal is the latest to be struck for a speculative space, coming a month after Dexus secured RMA Automotive to a 21,385 sqm development at Mickleham, north of Melbourne.
Time & Place also found occupiers for to completing an Epping estate with three office/warehouses, measuring a total of 46,240 sqm, LOGOS acquired on a funds through basis for $70m in 2020.
“Extremely low vacancy rates for premium industrial stock in the south east has coupled with a commercial flight to quality and amenity, making our developable land at Rubix Connect extremely popular,” FPI general manager, Andrew Hanna, said.
“Interest is coming from occupiers like Nolan Group which has outgrown its existing warehouses, as well as those looking to relocate into modern facilities,” he added.
“The inclusion of quality speculative facilities in our construction strategy has proven successful over the years, with strong leasing enquiries and pre-commitments,” according to the executive.
Dandenong South is about 31 kilometres from the CBD.
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