ESR sells Melbourne industrial site
Asia-based logistics platform ESR has stepped up its trading activity with the sale of a large industrial landholding in Melbourne’s south-east to a private developer for $19.75 million.
HB+B Property, a developer that focuses on industrial, commercial and social infrastructure projects, has taken over the 39,760-square-metre site at 1-5 Lakeside Drive in Dingley.
CBRE’s David Aiello, Stephen Adgemis and Lachlan Ferguson brokered the deal for ESR, which is controlled by US private equity giant Warburg Pincus and entered the local market two years ago.
The powerful platform has become increasingly busy after taking over ASX-listed fund manager Propertylink this year. Last week, it put an office building at Liverpool in Sydney on the market with a price tag of $50 million.
This month, it sold a joint venture development in Melbourne’s south-east – which will serve as the new national headquarters for carmaker Nissan – to Singapore property group Ascendas REIT for $111 million.
“The sale is yet another example of how highly sought after large industrial landholdings are in Melbourne’s south-east,” Mr Aiello said.
The Dingley property is a freehold site comprising three warehouses with a total lettable area of 17,431 square metres.
“Given the lack of greenfield opportunities, developers are actively targeting strategic brownfield sites when they are made available,” Mr Aiello said.
“In this case, the property benefits from its location immediately opposite Moorabbin Airport and Chifley Business Park, as well as the inclusion of three existing building, which have been acquired for a fraction of their replacement value.”
Mr Adgemis said the site suited a range of redevelopment options and the area had emerged as a last-mile delivery precinct.
“There are opportunities to strata, refurbish and/or reposition the improvements for higher and better use,” he said.
