Strategic 55,557sqm holding with leaseback income highlights investor appetite for infrastructure-led growth corridors.
One of Melbourne’s largest and most strategically positioned infill development sites has sold in a deal worth $53.8 million, underlining a growing trend of industrial assets transitioning to potential future large-scale mixed-use and residential projects.
The 5.5-hectare Bayside Green site at 332–336 Bay Road and 43 Jack Road in Cheltenham has been acquired by fund manager Forza Capital following a competitive Expressions of Interest campaign managed by Colliers Rob Joyes, Jozef Dickinson, Gordon Code, Billy Kanakis and Daniel Telling.
The property, long utilised as a Laminex manufacturing facility for more than 70 years, was sold with leaseback in place, providing the incoming owner with a substantioalinitial net income while planning for redevelopment.
Spanning more than 55 hectacres, the Cheltenham site offers extensive frontages to Bay Road and Jack Road and sits just 450 metres from Southland Station and Westfield Southland, placing it at the centre of a rapidly evolving Bayside precinct and strategically located in the Surbanban Rail Loop Authority’s identified master plan.
The purchaser is expected to pursue a staged redevelopment strategy, combining residential development with a commercial precinct, with the ultimate outcome to be determined after a decision is handed down on rthe land future land uses.
Jozef Dickinson, Colliers National Director | Residential, said, “The vendor really positoned the asset well for the market, offering the property with a leaseback in place, providing a rare opportunity to generate holding income while carefully planning a large-scale redevelopment aligned with the next phase of growth in Cheltenham.
“The purchaser recognised the strategic positioning of the site within a rapidly evolving precinct and is well placed to unlock its long-term potential over time.”
The scale of the transaction reflects a broader shift across Melbourne’s middle-ring suburbs, where large industrial sites are increasingly being targeted for urban renewal, particularly in precincts benefiting from major infrastructure investment such as the Suburban Rail Loop.
Colliers State Chief Executive, Victoria, Rob Joyes, said, “As Melbourne continues to grow and evolve, we’re seeing strong demand for sites that align with major infrastructure investment and long-term planning frameworks. Projects like the Suburban Rail Loop are playing a key role in shaping where capital is being deployed and how the city will accommodate future population growth.
“Opportunities of this scale, particularly those with proximity to transport, established amenity and flexible zoning, remain tightly held. As a result, we expect sustained interest from both domestic and offshore buyers looking to secure strategic positions in high-growth precincts.”
Unique to the transaction was the ability for Forza Capital to settle the deal in less than one week, demonstrating that the capital environment remains hungry for large scale opportunities that have a clear value add angle.
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