A strategic infill site at one of Melbourne’s tightest held northern industrial and logistics precincts, Somerton, has sold for $12.2m in a transaction brokered by Anthony Cannizzaro, Mario Moscon and Arthur Vainbrant of Savills Australia and New Zealand.
The property, uniquely positioned at 34-42 Freight Drive, Somerton, was subject to over 50 enquiries and six official offers from a mix of institutional, private as well as owner occupier buyers – one of which was the successful purchaser, Pacific Hire.
Anthony Cannizzaro, Director, Industrial and Logistics at Savills said, “This was a rare opportunity to secure a significant landholding in a highly coveted location.
“From the ample space, versatile warehouse facilities and the potential to grow and develop the property, this was a standout offering in a booming industrial precinct,” he said.
The site was also sold with a short-term lease underpinning the offer.
Somerton, in Melbourne’s north, is 20kms from the CBD and bound by three major northern arterials including the Hume Freeway, Hume Highway and Metropolitan Ring Road, with Port of Melbourne just 25kms away. Other occupiers also located in Somerton include blue-chip brands such as Bluestar Logistics, GWM Haval Australia, Honda Motor Company and Visy Logistics.
Record-breaking infrastructure investment is planned for the precinct and surrounds, including the $15b North East Link, connecting the M80 Ring Road with an upgraded Eastern Freeway, set to cut travel times between Melbourne’s north and south east by over half an hour.
Anthony Cannizzaro, Director, Industrial and Logistics at Savills said, “We are seeing a lot of enquiries coming through for value-add sites from both developers and owner occupiers, with the market continuing to show strong results due to the lack of stock available and continued strong buyer appetites for industrial properties.”
A report released by Savills recently showed that while there’s been a pull-back in activity over the last two quarters, triggered by the rapid rise in debt costs last year, warehouse demand is still elevated and looking unlikely to slow down with vacancies still near 1.0%.
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