Wanslea Terrace has sold a warehouse in Melbourne’s southeastern suburb of Scoresby for $16.8 million, setting a new record for the area of $2731 per sqm.
The 6,152 sqm office and warehouse property at 12 Koornang Road was sold to an owner-occupier who planned to occupy the site later this year.
The 8,881 sqm site was marketed through an expressions of interest campaign that attracted more than 100 enquiries and seven offers.
Knight Frank’s Stuart Gill and Steven Salopek negotiated the sale.
“Prior to the on-market campaign the vendor had received offers brought in from another other agent in the low $14 million range, but our on-market campaign resulted in a sale price of nearly 20% higher,” Gill said.
“Demand was so incredibly strong due to the ongoing shortage in Melbourne’s industrial market, and the competition for the asset led to an escalation in the price with a record being achieved.
“There is limited supply of industrial property sized at more than 5,000 square metres for sale in the southeast of Melbourne.”
Salopek said buyers were also attracted industrial property because it was a high-quality asset in a sought-after location close to Eastlink.
“The property also provides the flexibility to subdivide in the future, subject to council approval, to create two smaller warehouses,” he said.
“It is located within the city of Knox’s industrial precinct, in close proximity to Eastlink and Stud Road providing excellent access to Melbourne’s road network.”
Major occupiers within the area include Mondelez, Multicrop, Thermo Fisher Scientific, Hallmark Cards, Davey Water Products, Bucher, CSR Bradford and Cummins.
The latest industrial research from Knight Frank found vacant space in Melbourne’s southeast declined by 16% over the first quarter of 2022, and was down by 11% year on year due to surging demand for industrial space.
Recent industrial property deals in Victoria include Sector Property Group’s purchase of a 6.19-hectare land parcel in the western suburb of Altona for $24.5 million in February.
Also in February, Ascot Capital bought a distribution centre near Albury–Wodonga from Wine Depot for $10.6 million, while Charter Hall Direct Industrial Fund No.4 bought an SPC industrial property in Shepparton for $66 million.