Operators trade Dandenong South going concern
A concrete products manufacturer has bought both the real estate and operating business of a Dandenong South rival.
The going concern for Frankston Concrete Products is speculated to be costing c$36 million.
The transaction includes a 4.02 hectare holding developed as an outdoor storage complex at 9 Colemans Road.
Improvements spanning 8152 square metres cover a low 20 per cent of the block.
The business operating platform is included too.
The buyer is local.
Going concern deal
Dandenong South forms part of Victoria’s largest industrial precinct about 31 kilometres from Melbourne’s CBD.
“This is a landmark transaction not just for Dandenong South, but for the broader industrial market,” Colliers’ James Stott, who brokered the deal with Gordon Code and Cameron Commercial’s Nic Sal and David Johnson, said (continues below).
“We are seeing a definitive shift as occupiers step in to secure high-quality infill assets, particularly where they can acquire both the real estate and an operational platform in a single transaction, with M&A (mergers and acquisitions) activity increasingly intersecting with property decisions,” he added.
“Assets with this level of land scale, power capacity and surplus hardstand are exceptionally scarce in today’s environment,” according to the executive.
“That scarcity is continuing to drive strong owner-occupier demand, particularly in the south east where industrial land supply is effectively constrained”.
Mr Code said “the south east remains Australia’s most tightly held and strategically significant industrial market”.
The deal comes five week since we reported Sydney investors traded a 2.87ha asset in the suburb, 41-53 Monash Drive, for nearly $28m.
Last year meanwhile Bunnings renewed its lease for a major distribution centre within Dandenong South’s Nexus estate after landlord Salta committed to an extension.
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