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