Visy is offloading an enormous Broadmeadows factory where it makes cartons and other packaging material.
The 7.5 hectare site at 1-31 Riggall Street is being marketed as a strategic opportunity – Gross Waddell’s Michael Gross and Andrew Waddell with Cushman and Wakefield’s Peter Sagar and Michael Green promoting that it is “currently” zoned Commercial 2.
Its north and north east boundary abut established residential neighbourhoods.
Merlynston Creek, which in this part of Broadmeadows forms part of a linear park, is also opposite the Visy Packaging holding.
Within the Greater Broadmeadows Framework Plan, this site is classified as priority precinct B – meaning it could be considered for a mixed-use development comprising medium density housing.
The selling agents said the elevated block also offers “exceptional” views of the Melbourne CBD, about 16 kilometres away.
Visy’s wouldn’t be the first landmark Broadmeadows factory to be re-purposed
In mid-2017, the 3.3 hectare former Hard Yakka factory in nearby King William Street, Broadmeadows, sold to South Australian residential developer Rendition Homes, for $11 million.
Like the Visy Packaging site, the Hard Yakka block had multiple street frontages, some opposite residential precincts.
The suburb’s ex-Kraft plant – an 11 hectare parcel – was rebuilt as a business park about 13 years ago.
All three blocks are walking distance to Broadmeadows Shopping Centre, Hume Secondary College and the suburb’s train station.
For decades, Broadmeadows has been considered a Major Activity Centre by planning departments working for both state governments.
The suburb now has a median house value of $532,000, according to realestate.com.au.
Structure of Visy’s listing gives incoming owner options
Visy Packaging is offering 1-31 Riggall Street with a three year leaseback paying a fixed annual rent of $1.32 million.
This property could feasibly be re-let after 2023, with the incoming owner having a long lead-in time to find an occupier.
Entered via security gates, it includes several paved car parks and 24,588 sqm of improvements within several buildings.
The Broadmeadows property could also be replaced with (and possibly sold-down as) an industrial park: exploiting frontage to Belfast and Maldon streets and Dallas Drive.
Assuming Visy Packaging would sell 1-31 Riggall Street at a 6.5 per cent yield – it could be set for a c$20 million payday.