Modern EastLink‑adjacent warehouse highlights continued demand for high‑quality industrial investments in Melbourne’s south‑east.
Colliers has successfully sold 81 Atlantic Drive, Keysborough for $11 million, highlighting the continued depth of demand for prime industrial investment assets in Melbourne’s south‑east.
The sale was managed by Sam Hibbins, Luke Lowden, Daniel Telling and Billy Kanakis of Colliers and followed a competitive Expressions of Interest campaign that generated strong enquiry from both owner‑occupiers and investors. The asset was ultimately acquired by a private investor, attracted by its institutional‑grade build quality, secure income profile and strategic location within the tightly held Key Estate precinct, immediately adjacent to EastLink.
The modern 4,410 square metre office‑warehouse sits on a substantial 6,557 square metre landholding and features 10‑metre internal clearance, ESFR sprinklers, multiple loading points including a recessed dock, a large hardstand suitable for B‑double trucks, and high‑quality dual‑level corporate offices.
The property is fully leased to GNS Wholesale until April 2028, generating a net passing income of $546,086 per annum with fixed annual increases of 3.25 per cent. This provides secure holding income alongside positive rental reversion potential, with current rents approximately 18 per cent below assessed market levels.
Sam Hibbins, Director | Industrial & Logistics at Colliers, said, “This was a true trophy industrial asset, offering a combination of prime‑grade building quality, strong fundamentals and an unbeatable location next to EastLink.
“The depth of enquiry from both investors and owner‑occupiers demonstrates that best‑in‑class facilities in established precincts like Keysborough remain highly sought after, particularly where there is income security and upside.”
The transaction reflected an initial yield of 4.96 per cent, with a building rate of $2,494 per square metre, reinforcing the premium being placed on modern, well‑located assets in land‑constrained markets.
Luke Lowden, Director | Industrial & Logistics at Colliers, said, “Keysborough continues to be one of Melbourne’s most tightly held industrial precincts, supported by low vacancy, strong occupier demand and exceptional connectivity.”
Located approximately 27 kilometres south‑east of the Melbourne CBD, Keysborough provides immediate access to EastLink, the Dandenong Bypass and the Monash Freeway, positioning it as a critical logistics and distribution hub within Melbourne’s industrial network.
According to Colliers Q1 Industrial & Logistics Snapshots, take‑up softened in the first quarter of 2026, however, Melbourne remains the most active industrial market nationally, with vacancy tightening to 3.8 per cent, the lowest across the East Coast.
Billy Kanakis, Director | Industrial & Logistics Capital Markets at Colliers, said, “With the speculative development cycle largely complete and leasing activity increasingly focused on existing stock, we are seeing continued demand for high‑quality, well‑located assets. This is being reinforced by a clear flight to quality, stable yields and growing participation from domestic capital, all of which are supporting confidence in prime industrial investments.”
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