Australian Paper Recovery Secures State-of-the-Art Facility in Dandenong South

Colliers successfully negotiates landmark pre-lease agreement for APR in Melbourne’s premier heavy industrial zone.

Colliers Industrial & Logistics James Stott and Sam Hibbins have secured a landmark commitment to leading recycling provider Australian Paper Recovery (APR) as the company has committed to a pre-lease agreement for a 9,191sqm state-of-the-art facility at 15- 27 Mark Anthony Drive, Dandenong South.

It is a strategic move that reinforces APR’s long-term growth in sustainable recycling and underscores the unique positioning of Dandenong’s IN2Z Industrial Zone—the last remaining precinct in Melbourne’s core South East reserved for heavy and offensive industries requiring substantial buffer zones.

The Dandenong IN2Z Industrial Zone, bordered by Eastlink, Hammond Road, Greens Road, and Bangholme Road, is now fully developed, making this transaction one of the final development opportunities in the precinct. The area, which is exclusively zoned for industries with stringent operational requirements, provides an optimal environment for APR’s high-tech recycling processes, ensuring long-term efficiency and compliance.

The new 9,191sqm facility has been carefully designed to meet APR’s operational needs, comprising an 8,639sqm warehouse and 552sqm of office space. The site incorporates recessed loading docks, weighbridges, and a streamlined logistics layout, ensuring efficient operations. A bespoke built-form solution was delivered through close collaboration with both APR and the developer, enabling APR to optimise its recycling operations with cutting-edge technology.

Darren Thorpe, Managing Director, Australian Paper Recovery “This new state-of-the-art facility is a critical milestone for Australian Paper Recovery as it supports our long-term growth strategy and reinforces our commitment to sustainable recycling. This investment reflects our confidence in the future of the recycling sector and our dedication to driving innovation and excellence within the industry.”

James Stott, National Director of Industrial & Logistics at Colliers, said, “Securing this purpose-built facility in Dandenong South’s premier heavy industrial zone is a significant milestone for APR. This state-of-the-art facility will not only enhance their operational efficiency as they continue to expand within a strategically important location.”

“Melbourne’s South East industrial market is characterised by tight vacancy rates of only 1.35%, driven by limited land supply and a weak speculative pipeline. These factors have been essential in maintaining stable rental growth. The demand for premium heavy industrial facilities remains robust, and securing built-form opportunities in such a fully developed precinct is increasingly challenging.

Colliers Associate Director | Industrial & Logistics, Sam Hibbins continued, “The supply constraints in the South East have seen a spike in land values as buyers compete for the last remaining opportunities.”