This article is from the Australian Property Journal archive
AN enormous 23.23-hectare infill site in Melbourne’s south eastern suburb of Mulgrave has hit the market, presenting a rare last-mile logistics and distribution centre opportunity.
The amalgamated 508-520 Wellington Road and 522-550 Wellington Road site, next to Mirvac’s Waverley Park redevelopment, has been occupied by Woolworths, for a distribution centre and Victorian state head office, and manufacturing company Renold Australia since the 1970s and currently brings passing income of $6.15 million per year.
It is being offered in one line through Dawkins Occhiuto.
The property has over 350 metres of frontage to Wellington Road and over 560 metres to the Monash Freeway, and offers immediate access to both the Monash Freeway and Eastlink.
Dawkins Occhiuto’s Walter Occhiuto said the landmark property is the “epitome of a strategic investment, boasting both stabilised income and development potential”.
He said the property’s current improvements are offered at below replacement cost and have significant future reversionary potential, in addition to over five hectares of surplus land.
“This is the standout infill opportunity of 2023. Given the scarcity of large-scale infill sites in Melbourne’s tightly held industrial property market, particularly in the inner south eastern corridor.
“Very rarely does an opportunity present, that offers such a wide scope of alternatives, ranging from significant future redevelopment, repositioning existing improvements and capturing rental reversion, or value adding given the extremely low overall site coverage.”
“A site of this magnitude has not been offered to the market in quite some time and it is anticipated to generate unprecedented interest.”
Growthpoint sold off the 522-550 Wellington Road site in 2017 for $90.75 million. A year later, Pomeroy Pacific acquired the 4.1-hectare 508-520 Wellington Road portion, occupied by Renold, for $30.5 million.
Expressions of interest close Thursday, 24th August.
In neighbouring Clayton, MaxCap and Troon Group have just snapped up 10 hectares of industrial 1-zoned land for a 60,000 sqm warehousing development.
On the edge of the CBD, meanwhile, Charter Hall is paying $114.6 million to Bega Cheese for the 100-year-old Vegemite factory in Port Melbourne. The 36,915 sqm facility will be leased back to Bega on a 15-year leaseback with a 10-year option.
