Osprey Property Group pays $8.3m for Dandenong South industrial investment

The Dandenong South asset covers a 1.8 hectare block.

Sydney-based Osprey Property Group has paid $8.325 million for an investment in one of Melbourne’s biggest industrial precincts.

The sale of 4 Healey Road, Dandenong South, was negotiated by Cushman & Wakefield’s Jordie Cassidy and Andrew O’Connell.

The property was sold by the occupant, Aware Environment Group, a leading organic and natural skin car company.

On a 1.8 hectare block the asset includes an 1844 square metre office and amenity area and a 9070 sqm warehouse. It also offers expansive paved yard areas, power supply and a large open-air car park.

Inside the 9070 square metre warehouse component of the asset.

Dandenong South, about 31 kilometres south-east of the CBD, is one of Melbourne’s most valuable industrial pockets in which to rent or buy.

The suburb made national headlines in mid-2017 when global online retailer Amazon chose a former Bunnings warehouse at 29 National Drive as the location for its first Australian fulfilment centre.

This Healey Road site is about 2.5 kilometres south-east of the Eastlink motorway.

While a leaseback industrial deal is not unusual – this one reverses a notable trend of late, of owner-occupiers acquiring sites.

Last week we reported that Dex Collections was paying Vaughan Constructions $8.5 million for an as-yet-unbuilt office warehouse in the suburb.

On Tuesday we reported that sheetmetal producer Design Group Limited was paying $6.8 million for a Laverton North site, which is in 11 kilometres west of the Melbourne CBD.

Of the Healey Road deal, Mr Cassidy said he was pleased to have “secured a strong outcome for both the buyer and seller, with both able to take advantage of a buoyant market for industrial sites in extremely limited supply”.

“We expect to see occupier demand continue to strengthen across Melbourne’s south-eastern industrial precincts, particularly in the Dandenong/Dandenong South area, which will support further rental increases”.

Mr Cassidy said the south-east precinct recorded an 8.9 per cent uplift in prime effective rents during the third quarter of 2018 alone.

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Marc Pallisco

A freelance property analyst and journalist, Marc is a co-founder of realestatesource.com.au.

Marc Pallisco