Prime development land that once housed a quarry has been sold in Cranbourne East in a significant deal.
The sale marks LAWD’s fourth successful sale in the Croskell Employment Precinct in the City of Casey area over the past two years. Melbourne Property developer MAB purchased the land.
According to the companies, the final price has been kept confidential, but LAWD has confirmed that its total proceeds from the precinct sales have exceeded $300 million due to the transaction. This is the third parcel of land MAB has purchased in the precinct.
According to the Australian Financial Review, the site used to be home to a former Nubrik quarry which has ceased operations.
Peter Sagar, senior director at LAWD, said Victorians have shifted from visiting traditional retail shopping centres to shopping online, increasing the need for logistics and supply chain businesses.
“We are seeing a real shift, fast-tracked by Covid, where retail shopping has morphed into warehouse-based businesses selling products online and using logistics and supply chains to deliver to customers, rather than people shopping in a traditional storefront,” Sagar said.
“Residential lot sizes are also shrinking across Melbourne, becoming a catalyst for a booming self-storage market, as people seek additional storage for their assets such as boats and caravans.
“This has significantly increased demand for this type of real estate, and for MAB, the acquisition creates a large institutional scale holding for them in an area where the supply of industrial land is largely exhausted.”
Fawkner Property has been a long-term holder of the land, and Chris Garnaut, its founder, was pleased with the outcome.
“It was always our intention to hold on to the land and achieve full value to provide capital gains for our investors, so this transaction is a terrific result for our unit holders,” he said.
The successful sale of 1520 Thompsons Road in Cranbourne East was transacted by LAWD’s Peter Sagar, Paul Callanan and Henry Sayers.
“Our team has a detailed understanding of the catchments these assets sit within and can shepherd a transaction right from the beginning through to contract completion,” Sagar said.
“We take pride in understanding the supply and demand for industrial and commercial land within Melbourne’s various precincts.”
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