Landmark industrial asset in Melbourne’s growth corridor sold for $95M

22 December 2022

A large-scale infill redevelopment site within Melbourne’s premier and most prestigious industrial markets, Dandenong South, has changed hands in excess of $95 million.

The prime 12.21 hectare industrial site, which included the manufacturing facility that has operated for decades for global heavy vehicle powerhouse, IVECO, was sold to Aliro Group and ISPT, who plan on redeveloping the site into a premium logistics estate.

Colliers’ Daniel Telling, Gordon Code, Gavin Bishop, and Sean Thomson exclusively transacted 1-27 Princes Highway on behalf of IVECO, who will retain a 1.7 hectare part of the initial offering for a new innovation centre.

Colliers’ Manager, Daniel Telling, said, “This transformational result will see IVECO embedded to the precinct for the foreseeable future within their innovation hub that will be delivered in partnership with the purchaser.”

“The asset is one of the largest and most well known sites of scale within the premier South-East industrial and logistics market,” Mr Telling added.

Dandenong South is one of Australia’s most established industrial precincts with an extensive history in manufacturing and logistics due to its proximity to Melbourne’s South East growth corridor and skilled workforce, just 30 kilometres from Melbourne’s CBD.

Colliers Managing Director Gavin Bishop said, “Dandenong South is a land-constrained market with exceptionally strong rental and capital growth prospects, which will further benefit from the rapid growth of e-commerce.”

“Melbourne’s South East has been one of the most active industrial markets for leasing activity over the last three years, with record levels of demand, which have driven vacancy rates to a low 0.2% for stock above 5,000 sqm,” Mr Bishop concluded.