Partners Plan Industrial Development After $19m Purchase

A 6.65ha site in Melbourne's south-east will be divided into industrial lots under a plan put forward by the new owners, who paid $19 million for the land.

Brix Property Group and Costa Asset Management will lodge a planning application for the site’s subdivision with a component of the land to be retained.

The site, at 300 Frankston-Dandenong Road, Seaford is about 35km from the Melbourne CBD.

Brix Property Group managing director Adam Brick said the location had some of the lowest vacancy rates among industrial properties and a limited future supply of industrial land.

Brick said the group was focused on the purchase and repositioning of older industrial and commercial-zoned sites in prime locations.

The acquisition is the second development the partnership has worked on after they bought a Charlemont site in September last year with plans for a service station and commercial project.

The Seaford site is zoned industrial and has a 220m frontage to Frankston-Dandenong Road.

Last month, private financier and investment firm Qualitas announced plans to invest $50 million in a new 60ha logistics hub in the 120,000sq m former Ford assembly site at Broadmeadows

The $500-million project is being overseen by local developer Pelligra Group.

JLL’s annual industrial investment outlook 2021 has tipped Australia is likely to benefit from the growing Asia Pacific investment market, with up to $45 billion of capital to be deployed this year.

The report found that Australia’s industrial and logistics sector recorded $4.4 billion in industrial investment sales for transactions $10 million and over in 2020.

This total is 13 per cent above the 10-year annual average and slightly above the total sale volume recorded in 2019.