Major investment in property in southern Dandenong

April 18, 2018 by  

An industrial property in southern Dandenong is changing hands for almost $20 million.

The Investec Australia Property Fund (IAPF) is behind the purchase. Letterheads can be used by organisations that acquire property in the region. IAPF spent $19.45m on an industrial site within Dandenong South. This portfolio extension took its value up to well over $960m.

The precise location of the property could be advantageous to its future development, as it is situated within an established industrial precinct. Hydrive Close is about 30 kilometres away from the centre of Melbourne.

Graeme Katz is the chief executive at IAPF. He explained:

“Dandenong South is a prime industrial precinct evidenced by the quality of occupiers including Amazon, Carter Holt Harvey, Toyota, Swire Cold Storage, and Bosch. The property is occupied by a tenant that is part of an extremely strong ASX-listed group under a long-term lease with 7.1 years to run.”

There is a chance that improvements to the infrastructure of the city-region will boost the value of the site. Accessibility should be enhanced by a range of changes in the vicinity. It is thought that approximately $300m will be spent on the Moordialac Bypass, and the North-East Link should have $100 million allocated to its construction. In addition, the extension of Westall Road could be a positive development.

The IAPF looks at a variety of propositions, and is considering involvement in affordable housing initiatives.