This article is from the Australian Property Journal archive
FRASERS Property Industrial is offloading 14 industrial zoned land parcels spanning a combined 3.34 hectares in Melbourne’s south east.
The parcels range between 813 sqm and 8,089 sqm and located within Rubix Connect on Taylors Rd in Dandenong South.
Savills, CBRE and Colliers have been appointed to manage the sales campaign closes on 1st October 2020.
“We are offering the market a very rare opportunity by selling a selection of small retail land lots to complement our built form development strategy. There is very limited land supply and availability in the South East for prime industrial land. A range of owner occupiers and developers are expected to purchase in this stage,” general manager southern region for Frasers Property Industrial, Anthony Maugeri said.
Of the remaining 239 hectares of land with industrial zoning controlled by developers in the south east, 96% is either owned by a large private company or institutional landlords and available for leasehold opportunities only, according to Colliers.
The land is close to the recently announced intermodal freight terminal at Salta’s Nexus estate that will improve the area’s connectivity with the Port of Melbourne.
Sam Hibbins of Colliers said there are approximately 1,626 warehouses between 1,000 sqm to 4,000 sqm gross lettable currently tenanted Dandenong South and surrounding south eastern industrial precincts, with about 50% of these leases expiring by 2023 or earlier.
“It creates a large owner occupier pool and with no current competing land releases in Dandenong South. We anticipate this demand will be funnelled into Rubix Connect.”
CBRE data shows south east vacancy is at an all-time low, at 2.3%, following two years of limited speculative activity.
Rubix Connect enjoys road linkages to EastLink, Frankston-Dandenong Rd and the South Gippsland Hwy, as well as Taylors Rd and Glasscocks Rd that have both been earmarked for infrastructure upgrades.
Frasers Property Industrial recently secured its first tenancy in the 41.3 hectare Rubix Connect. Power tools and garden products company Ozito commited to a new 19,815 sqm bespoke facility which will be delivered with a 15,520 sqm speculative facility in May next year.
“Industrial land in Melbourne’s south east is one of the market’s most hotly pursued sectors as new and established businesses continue to choose Dandenong as their location of choice due to its excellent arterial connections, as well as being an established industrial hub that has an excellent work force catchment,” Kosta Filinis of Savills said.
