This article is from the Australian Property Journal archive
A SIGNIFICANT infill redevelopment site in Melbourne’s premier industrial market, Dandenong South, has sold to Aliro Group and ISPT for $95 million.
The prime 12.21-hectare industrial site at 1-27 Princess Highway, around 31km south-east of the Melbourne CBD, is occupied by a manufacturing facility, owned and operated by IVECO for decades, before being offloaded by the global heavy vehicle manufacturer and distributor.
Daniel Telling, Gordon Code, Gavin Bishop and Sean Thomson from Colliers exclusively managed the sale on behalf of IVECO, who will retain a 1.7-hectare of the initial offering for use as a new innovation centre.
“This transformational result will see IVECO embedded to the precinct for the foreseeable future within their innovation hub that will be delivered in partnership with the purchaser,” said Daniel Telling, manager at Colliers.
“The asset is one of the largest and most well known sites of scale within the premier South-East industrial and logistics market.”
Dandenong South is one of the country’s most established and prestigious industrial precincts, with its proximity to Melbourne’s South East growth corridor and skilled workforce enabling a long manufacturing and logistics history.
“Dandenong South is a land-constrained market with exceptionally strong rental and capital growth prospects, which will further benefit from the rapid growth of e-commerce,” concluded Bishop, managing director at Colliers.
“Melbourne’s South East has been one of the most active industrial markets for leasing activity over the last three years, with record levels of demand, which have driven vacancy rates to a low 0.2% for stock above 5,000 sqm,”