A 64,000 square metre Keysborough industrial property looks set to fetch more than $20 million as investors vie for scarce opportunities in Melbourne’s south-eastern market.
Located two kilometres west of Dandenong CBD, the 68-80 Kirkham Road office and warehouse facility comprises 32,203 square metres of office, factory and warehouse buildings, including three large 10 metre high factory cells, and on-site parking for 130 cars.
According to Savills agents Ben Hegerty, Paul Jones, and Chris Jones, who are managing the sale, the property will be sold subject to a lease to Venture DMG Pty Ltd, a subsidiary of Venture Global, at a total net income of $1.584 million per annum.
Paul Jones said the property offered opportunities for owner-occupiers, core-plus and add value investors, and developers.
"Developers have the opportunity to purchase 6.4 hectares of prime industrial land, with exposure to EastLink and the Dandenong Bypass, in one of Melbourne’s most sought after industrial locations, while investors have the opportunity to reconfigure the site and utilise the multiple buildings to create a substantial business park or redevelop part of the site to enhance the investment.
"The facility also offers huge warehousing and multiple hardstand and truck marshalling areas ideally suited for transport and logistics occupiers.
"Either way the property presents as very good buying at a fraction of replacement cost in what is one of the best markets we have experienced in the south-east in recent times,’’ Mr Jones said.
He said the property’s high underlying land value underpinned the asset value and enabled multiple development and exit strategies to developers and occupiers alike.
According to Savills research recorded approximately $2.08 billion worth of reported industrial property transactions occurred in the South-East market in the 12 months to September, well over half a $billion more than the five year average of $1.44 billion.
The research also revealed a strong South-East leasing market with nearly 500,000 square metres leased over the same period, well up on the five year average of 276,407 square metres.
An Expressions of Interest campaign will close November 24.