A premium asset in a prime Dandenong South location is for sale through Burgess Rawson’s Matthew Wright, David Napoleone, and Mark Foster as part of the highly anticipated Investment Portfolio Auction 173.

Located at 1 England Street, the property features a brand-new five-year net lease to August 2029 with Rangedale Drainage, a leading national drainage services provider operating across 12 locations on the east coast.

Mr Wright said opportunities like this in Dandenong South are becoming increasingly rare.

“With industrial vacancy rates in Melbourne’s southeast at just 1.5%, combined with the calibre of this national tenant and favourable lease terms, this asset represents a premium investment in a high-demand market.”

Strategically positioned on a 3,648 sqm freehold site with Industrial 1 Zoning (IN1Z), the property enjoys prime exposure with 116 metres of corner frontage to Abbotts Road and England Street, a route traversed by 17,800 vehicles daily.

Mr Wright said its proximity to key arterials, including Eastlink and the South Gippsland Freeway, ensures seamless connectivity for the tenant and enhances long-term appeal.

The lease terms are highly attractive for investors, with a current annual rental of approximately $300,000 and a first-year increase of 8.3%. Average annual increases of 6% throughout the initial term deliver a substantial 26% compounding uplift. Additionally, the tenant covers all outgoings, including land tax, providing a landlord-friendly arrangement.

The 1,270 sqm industrial facility includes office and warehouse space, hardstand, and ample on-site parking, set within a tightly held precinct surrounded by prominent businesses like Amazon, Aldi, and Goodman’s $100 million Eumemmerring Business Park.

The property will be auctioned at Burgess Rawson’s Portfolio Event on Wednesday, 11 December 2024, at Crown Casino, Melbourne.

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