Frasers Property Industrial has pre-committed power tools and garden products giant Ozito as the first tenant for its Rubix Connect business park in Dandenong South.
The landlord only acquired the 41.3 hectare site making way for the industrial estate last April – outlaying $80 million.
At 875 Taylors Road, it is one of the last undeveloped tracts in the suburb, considered Melbourne’s most valuable for industrial property outside of the inner city.
As well as announcing the Ozito building, FPI today said it intends to construct a speculative warehouse adjacent to it.
Rubix Connect marketing kicks off two weeks after the company traded the last undeveloped piece of its Braeside Industrial Estate, about nine kilometres west of Dandenong – a 23ha site it acquired in 2018.
In February – and after 16 years – it concluded spruiking its 310ha West Park Industrial Estate, in Melbourne’s west Truganina, securing CEVA Logistics for the last portion.
Just prior to buying 875 Taylors Rd, Dandenong South, FPI completed a Keysborough business park, The Key, five kilometres north.
The Ozito facility: north west corner of Taylors Road and Fox Drive, Dandenong South
The Ozito factory will be developed at Rubix Connect’s entrance, specifically a site at the north west corner of Taylors Rd and Fox Drive.
It will have two crossovers from each street – similar to the Bangholme facility it is vacating at the intersection of Bangholme Rd and Lecton Dve.
The Dandenong South warehouse will spread 18,000 square metres and be attached to a double storey 1,815 sqm office. It also has 97 car spaces (story continues below).
FPI general manager, Southern Region, Anthony Maugeri, said the company is witnessing a strong flow of enquiry from e-commerce related businesses requiring more warehouse space.
“The DIY home market is also very active which is reflected in Ozito expanding and consolidating its warehouse footprint in Melbourne to meet customer demand.
“The south east region is Melbourne’s most established core industrial market,” the executive added.
“It is close to a very large population base and has a limited supply of prime rezoned industrial land,” Mr Maugeri said. “This diminished land supply combined with strong tenant demand is leading to increasing land values and rents and decreasing vacancy rates”.
The speculative facility next door
Next to the Ozito facility, FPI will develop a 15,575 sqm complex on a speculative basis.
“Over the past few years we have built several high quality spec facilities as part of our construction strategy and had great success leasing them on before practical completion,” Mr Maugeri said.
Rubix Connect is one big open listing
FPI is seeking other tenants to pre-commit to Rubix Connect facilities it may retain or sell as investments.
Owner occupiers, investors or other developers can also buy a piece of the land.
For agents, the landlord added, all of the real estate is now openly listed.