As Industrial land values increase in South East Melbourne industrial precinct by 40% since 2021, the offering of its size and scale is one of the last of its kind in Pakenham.

Colliers, in collaboration with Facey, have brought to the market a rare high-quality institutional-grade development opportunity on the behalf of Victorian Livestock Exchange.

Victorian Livestock Exchange has operated the property since the late 1990s and is now selling it to expand its existing Leongatha site, the largest livestock Exchange in Victoria.

The move has been prompted by the focus this precinct now has by corporate industrial occupiers and developers.

Located on 39 Exchange Drive, Pakenham, the asset is positioned on an expansive 68,240m2 of prime Industrial 1 zoned land and is positioned within the Officer-Pakenham State Significant Industrial Precinct (SSIP).

It includes a versatile 14,999m2 of existing improvements combining office and warehouse spaces, which can be repositioned or developed.

Colliers and Facey have partnered with leading industrial architecture firm Watson & Young to highlight the site’s development outcomes.

Once fully developed, the industrial site of significant scale will have an on-completion value of over $100 million, reinforcing Melbourne’s high-profile South Eastern corridor.

Colliers Industrial & Logistics Capital Markets Associate Director, Daniel Telling, comments: “Melbourne’s South East remains a submarket in focus for institutional developers and investors as they look to capitalize on the sustained low industrial vacancy, strong rental growth and the rise of last mile logistics within the precinct.”

Gordon Code, Industrial & Logistics National Director at Colliers, adds: “With the control of the vast majority of the remaining South Eastern industrial-zoned land in the hands of Salta, ESR and Frasers who are only offering leasehold opportunities to the occupier market, sizeable parcels of land like Exchange Drive will appeal to both developers and occupiers alike”.

As the supply of industrial-zoned land of this scale is becoming rarer to acquire in this specific area, a site of this nature with such strong underlying development fundamentals will be highly sought after by the market.

The site will also benefit from substantial infrastructure investments by the state government to support the population’s growth and employment within Melbournes South East.

Facey’s Partner, Graham ‘Josh’ Kendall concludes: “The Victorian Livestock Exchange represents a rare, prime opportunity, poised to captivate the market and offer potential futureproofing for both owner-occupiers and developers alike."

Recent institutional developer land acquisitions in Pakenham like ESR, at 92 Enterprise Road, and Brookfield Properties, at 60 and 130 Greenhills Road, cement this previously peripheral location as a serious destination for industrial occupiers.

39 Exchange Drive, Pakenham, is offered for sale via on-market Expressions of Interest by Tuesday 23rd March 2024 at 4 pm (AEST).