Singapore-backed Frasers Property Australia and logistics property firm ESR have acquired a 4.67 hectare site in Melbourne's industrial suburb of Mulgrave with development plans for a $400 million business park.
The new building, to be developed at 254 Wellington Road, sits within Monash’s National Employment and Innovation Cluster, predominantly a commercial and industrial area comprising modern offices, industrial business parks and large distribution facilities.
Andrew Peak, Gianni Macdonald and Stephen Adgemis from CBRE brokered the Nissan transaction. Stakeholders declined to comment on the final acquisition price.
“We plan to develop a state-of-the-art business park and are eager to deliver industry-leading amenity on the site to assist in attracting large commercial occupiers,” Frasers Property Australia commercial and industrial general manager Anthony Maugeri said.
Frasers and ESR previously developed 211 Wellington Road, a $51 million office project comprising 10,159sq m across five storeys. The building is now occupied by the financial services arm of BMW.
Melbourne's south-east is fast becoming a hot spot for larger corporations seeking to move their operations to suburban areas which are well connected to the central business district and local community amenities.
“We are seeing Mulgrave emerge as a growing suburban commercial office market,” ESR chief executive Phil Pearce said.
Frasers and ESR have secured Nissan as the anchor tenant for the business park, committing to 11,000 square metres.
“Securing a high-quality customer such as Nissan as our first tenant further supports the strategy of investing in and developing market-leading real estate and underlines the favourable outlook for the development in this sought-after location,” Pearce said.
Nissan, having spent 40 years at its facilities in Dandenong South, will now experience "state-of-the-art" facilities at its new office aiming for a 5 Star Green Star Design & As Built v1 certified rating from the Green Building Council of Australia.
“Our current office was officially opened in June 1977, so over the 40 plus years that we have based ourselves here it has served us well, but we have grown as a business since then,” Nissan Australia managing director Stephen Lester said.
Its new custom-built head office will be spread across five levels of the eight level building and will comprise over 9,000sq m office, 1,850sq m workshop and 550 car bays.
Nissan's new national headquarters will also house its finance arm Nissan Financial Services Australia, technical trainers and the Victorian state office.
Nissan Australia’s building is anticipated to be completed by May 2020 while the entire development is forecast for completion by late 2025.