Colliers agents James Stott and Charlie Woodley have secured the sale of a multi-tenancy industrial estate in Melbourne’s Dandenong South, selling for $27 million, on behalf of Arrow Capital Partners.
The industrial estate is located on 34-36 Commercial Drive in the heart of Dandenong South’s industrial precinct, encompassing three standalone industrial buildings, presenting a rare offering to operate the site as a standalone business or multi-tenancy estate.
Colliers National Director James Stott said, “The sale represents the largest brownfield industrial sale in Melbourne’s south east in the last 12 months, situated within a market that stands out from other industrial markets around Melbourne due to the lack of future supply with available land.”
“The low vacancy is creating systemic issues for a large section of the market, and when these rare opportunities come to market, we more often see fierce competition from owner-occupiers, private investors and developers who can all employ different exit strategies for the site,” Mr Stott added.
Arrow Capital Partners acquired the asset in 2021 with initial plans to redevelop the site into a brand-new business park. The successful sale result significantly returned their initial investment, highlighting the strong demand for core infill sites in Melbourne’s south east.
Dandenong South is one of the country’s most established industrial precincts with an extensive history in manufacturing and logistics due to its proximity to Melbourne’s south east growth corridor, major arterial roads with immediate access to Eastlink (M3) via the Dandenong Bypass, just 30 kilometres from Melbourne’s CBD.