This article is from the Australian Property Journal archive
EXCLUSIVE: A LARGE industrial development site in Melbourne’s booming south-east growth corridor is expected to attracted large developers and institutional investors looking to expand in their industrial & logistics footprint.
LAWD agents Peter Sagar and Paul Callanan are marketing the 1520 Thompsons Road Cranbourne East.
The agents said this was a rare opportunity to acquire a 32.45-hectare site, located approximately 45km from the CBD.
“This is a rare opportunity to acquire a significant proposed commercial development site of scale within the south east corridor, which is the most supply constrained corridor in Melbourne,” Sagar said.
The site has been identified for future commercial uses within the Croskell Precinct Structure Plan with a potential net developable area of 19.4700ha (STCA).
The agents decline to comment on the price.
Industry sources Australian Property Journal spoke to, have speculated the site could sell for more than $60 million.
The listing comes as Melbourne continues to experience unprecedented occupier demand and record low vacancy rates in the south-east.
The reality is that a Urbis and Property Council of Australia report from last year found there is only four years of zoned industrial supply remaining in Greater Melbourne.
And the south-east region has as little as one year’s worth of land available for industrial developments. The south-east region average yearly consumption between 2017-2011 was 120ha.
Callanan said the Thompson Road site is located within an area that has attracted major developers.
“The area has attracted significant investment from major reputable developers including Galileo Group; Moremac and MAB, purchasers are aware that industrial supply has largely been exhausted throughout this corridor.”
As well as those private developers, listed property owners, namely Frasers Property and ESR, have secured a foothold.
The scarcity of infill availability across Melbourne has spurred tenants to sign long-term lease agreements in order to secure their future.
Meanwhile latest data shows developers seeking land for new warehouse and logistics estates accounted for three-quarters of all industrial real estate transactions in the March quarter.
Melbourne saw $811.4 million of deals in the quarter, 76.4% above the long-term 10-year quarterly average of $460.0 million. This quarterly total was dominated by two major land acquisitions – UniSuper ’s acquisition of a 66-hectare site in Deer Park in a $260.0 million deal with Orica, while ESR and Frasers entered into a joint venture to secure a 64-hectare site in Cranbourne, paying $230.0 million to Salta Properties.
And last month real estate financier MaxCap Group and Troon Group secured a $400 million development pipeline in Melbourne’s south east.
The 1520 Thompsons Road Expression of Interest close at 3pm on Wednesday 10 July 2024.
