This article is from the Australian Property Journal archive
TWO of Victoria’s last remaining Precinct Structure Plan (PSP) approved, large-scale industrial assets have been brought to the market, including a 76.45-hectare parcel that featured in a $100 million deal nearly five years ago.
Positioned in Melbourne’s northern corridor, the properties include 910 Donnybrook Road, spanning 10.89 hectares, and adjacent larger parcel at 960 Donnybrook Road which are available individually or in one line.
The property addressed 960 Donnybrook Road was previously a 208 hectare site that partners CVC and Villa World sold for $100 million to Chinese developer Blueways Holdings at the end of 2017, a deal that at the time was subject to approval of the Shenstone Park PSP by the end of June 2022. Blueways partnered with Melbourne developer Wolfdene Group for a residential sub-division on some of the land which has more than 2,000 lots.
LAWD, in conjunction with JLL, are managing the expressions of interest campaign for 910 and 960 Donnybrook Road in Donnybrook, closing 10th August.
“Melbourne is currently experiencing unprecedented occupier demand and record low vacancy that is underpinned by e-commerce demand, onshoring and population growth,” LAWD’s Peter Sagar said.
“As a result, there is clear scope to capitalise on current and forecasted rental growth in a highly constrained land market and we expect these opportunities to receive significant interest from a buying pool including major institutions, large privates, developers, and syndicates.”
960 Donnybrook Road offers an institutional-grade business park development opportunity, with major frontages to Donnybrook Road and linkage to the nearby Hume Freeway, providing the ability to line haul freight to Sydney overnight.
On a combined basis the asset would have access to a major intersection on Donnybrook Road.
Major infrastructure projects in the works for Melbourne’s north include the Northeast Link, Outer Metropolitan Ring Road and the Beveridge Interstate freight terminal.
Industrial land consumption and development in Melbourne has reached record highs over the past two years.
JLL’s Matt Ellis, said Melbourne was a highly land-constrained market and where unlocking development-ready assets of scale was becoming increasingly challenging.
“Estimations show there is approximately only three to six years of forecasted supply remaining in Melbourne’s north based on consumption rates,” he said.
CBRE recently reported that Melbourne’s record low industrial vacancy rate will likely stay under 2% over the coming two years, leading to double-digit growth in land values as zoned land supply shrinks.
