This article is from the Australian Property Journal archive
IN one of the largest englobo land transactions in Melbourne’s south-east, a 81.2-hectare industrial estate development site has sold for more than $180 million.
The large-scale Trinity Clyde industrial estate is comprised of three connected landholdings—after the three vendors combined their selling power— located within the proposed Casey Fields South Precinct Structure Plan (PSP).
With an estimated capacity to deliver between 300-to-350 industrial lots in a small lot plan of subdivision, the Clyde landholdings include the 190,173sqm 1430 Ballarto Road, the 136,597sqm 245-255 Clyde-Five Ways Road and the 379,894sqm 1845 South Gippsland Highway.
Angus Clark, Henry Sayers and Ben Cooper from Cameron Industrial managed the sale via an expressions of interest campaign, on behalf of the vendors.
The agents were contacted for comment, however they were unavailable.
When the sales campaign launched, Clark was anticipating buyer interest at around $750,000 per acre, or approximately $150 million for the total site.
The amalgamated land area sits around 48km out from the Melbourne CBD and equates to around one-third of the proposed PSP, with each site boasting significant major road frontage, with over 1.1km of combined frontage.
Trinity Clyde also offers convenient access to transport links including the M1, South Gippsland Freeway, combined with future road infrastructure upgrades.
With local government zoning the property for Urban Growth, the soon-to-be industrial/mixed-use greenfield site represented one of the last remaining opportunities to acquire a site of this size in the south-east.
The supply of industrial zoned land in the Melbourne’s south-east remains consistently low, with an ongoing lack of opportunity for buyers and supply constraints over the past 24 months reflecting an extremely tight vacancy rate of 0.94%.
Just last month, an owner occupier spent $9,100,000 for an A-grade industrial warehouse and office in the constrained Dandenong South industrial precinct.
According to research from JLL, Melbourne’s South East recorded rental growth of 6.1% from the first quarter to the second for Prime and 11.4% q-q for Secondary.
This as national rental growth across industrial markets grew by 7.3% in Q2 2023 and 28.3% for the year, with average national prime industrial values up from $3,300 per sqm over Q1 to $3,420 per sqm in Q2, according to Colliers.
