Colliers Industrial & Logistics Capital Markets offer Lot 103, 5 Titan Drive, Mickleham, Victoria, for sale. This forward-funded food-grade and  speculative logistics facility is strategically located within Victoria’s largest master-planned business  and employment precinct, Merrifield Business Park, in Melbourne’s North. 

Upon completion, Lot 103, 5 Titan Drive, Mickleham, will comprise a cold storage, food production,  and temperature-controlled facility totalling 8,120sqm of improvements, developed by MAB, GPC and constructed by Texco Constructions. The facility is purpose-built for Sunny Queen Australia on a  10-year initial lease term upon practical completion. Along with an adjoining logistics facility of  6,225sqm, the total Gross Lettable Area (GLA) will be 14,345sqm. Additionally, there is potential to  acquire adjoining properties, allowing for immediate scale growth. 

The opportunity is underpinned by the strong demand in the Australian cold storage and food-grade sectors and benefits from changing consumption patterns and the boom of online retail.  

Colliers Industrial Associate Director Corey Vraca said, “As online sales for groceries, meal delivery  services, perishable foods, and the distribution of vaccines surged over the past two years, demand  for cold storage properties has dramatically increased. Increased occupier demand has been led  largely via retailers (including supermarkets), temperature-controlled 3PL specialists, and  pharmaceutical groups.” 

Gavin Bishop, Colliers Managing Director of Industrial & Logistics, added, “With a continuing cold  storage undersupply, vacancy rates of cold storage assets are at record lows. The sector is currently  valued at approximately $6.9 billion in Australia.”  

“Despite the sector’s recent growth, the cold storage market in Australia remains relatively limited,  with its share of total warehouse space estimated to be around 2-3%. Nationally, the vacancy rate  for the broader industrial market currently measures 2.6%. However, for cold storage assets,  vacancies are closer to zero, with only a handful of facilities available for lease over the next 12  months, exacerbated by the longer construction times given their specialised nature.”

Sean Thomson, Head of Industrial & Logistics Capital Markets, noted, “Despite the large increase in  demand, there remains a shortage of cold storage space, with Australia being one of the most  undersupplied markets globally. At present, Australia has approximately 0.38 cubic metres of cold  storage warehousing space per person, which is almost 20% below the average recorded for  advanced economies.” 

The future warehouse is situated within the $1.2 billion Merrifield Business Park, a joint venture between MAB and Gibson Property Corporation. The project spans a 415-hectare site, offering  flexible facilities ranging from under 10,000sqm to 100,000sqm, underpinned by key occupiers,  including DHL, Dulux, Ford, D’Orsogna, and Aeroklas 

The site is located approximately 30 kilometres north of the Melbourne CBD and 17 kilometres north of Melbourne Airport. With immediate access to the Hume Freeway, the property offers  convenient and efficient access for the transportation of goods and services to the CBD and the  greater Melbourne area.  

Colliers Gavin Bishop, Sean Thomson, Nick O’Brien, Corey Vraca, and Daniel Telling are managing the  sale of Lot 103, 5 Titan Drive, Mickleham. It is being offered for sale on a fund-through structure via  an International Expressions of Interest Campaign closing at 3:00 pm (AEDT) on Thursday, 24  October 2024.  

Related readings 

Perseverance pays as highly specialised facility sold by Colliers | The Industrialist

Scarce supply to fuel demand for cold-storage logistics facility offering | The Industrialist