In a highly constrained land market in Melbourne, two industrial landholdings have come to market in the northern growth corridor.

JLL’s Matt Ellis, Mario Moscon and Anthony Cannizzaro together with LAWD’s Peter Sagar, Paul Callanan and Darcy Tobin have been appointed to sell 910 Donnybrook Road and 960 Donnybrook Road in Donnybrook via an Expressions-Of-Interest campaign with expected buyers to be represented from major institutions, large privates, developers, and syndicates.

JLL’s Head of Logistics and Industrial - (Victoria) Matt Ellis said, “Melbourne is a highly land constrained market and it’s becoming increasingly difficult to unlock development ready assets of scale, with only approximately 3-6 years of forecasted supply remaining in Melbourne’s North based on consumption rates.”

In the past few years alone, consumption and development of Industrial land has accelerated far beyond what was previously forecasted in 2019.

LAWD’s Head of Development Transactions & Advisory - (Victoria) Peter Sagar said, “Currently Melbourne is experiencing unprecedented occupier demand and record low vacancy underpinned by e-commerce demand, onshoring and population growth.  As a result, there is opportunity to capitalise on current and forecasted rental growth in a highly constrained land market.”

Mr Ellis said, “It is becoming clear that all lot sizes are becoming scarce. The previous perception or myth that Melbourne’s core industrial markets have been largely oversupplied has been debunked. Purchasers of development land and indeed future occupiers of warehousing in this market have rapidly begun to realise that Melbourne’s land supply is very much finite.”

“We can see this realisation coming to fruition not just in the increase of land values but particularly in the values of retail industrial land allotments where we have seen an exponential increase in land values in a relatively short period of time,” Mr Ellis said.

This increase in land values is evidenced in the following JLL graph ‘Price per sqm (Melbourne’s North)’.

910 Donnybrook Road includes 10.89 Ha of land and 960 Donnybrook Road offers 76.45 Ha of land with both properties located adjacent to each other and are offered individually.

The two assets combined represent one of the only PSP approved industrial land holdings of scale remaining in Melbourne.

Part of 960 Donnybrook Road presents the opportunity to develop a major institutional grade business park (STCA). From a development perspective, the site is highly efficient given its exposure, scale and proximity to major transport linkages/services. The site benefits from major frontages to Donnybrook Road as well as nearby linkage to the Hume Freeway, which offers future occupiers the ability to line haul freight to Sydney overnight.

Major transport infrastructure has been fast-tracked and overall infrastructure has reached record highs in recent years.

Mr Sager said, “While the northern corridor benefits from extensive existing infrastructure such as the Hume Freeway, Somerton Intermodal Terminal and Melbourne Airport, there are plans to deliver a number of major infrastructure projects including the Northeast Link, Outer Metropolitan Ring Road and the Beveridge Interstate freight terminal, which will further enhance the area.”

Expressions-Of-Interest for 910 Donnybrook Road and 960 Donnybrook Road in Donnybrook close on 10th of August 2022.

To request a copy of the Information Memorandum please contact one of the marketing agents via the contact details below.