Among last remaining PSP approved sites of scale in Melbourne hit the market

TWO of Victoria’s last remaining Precinct Structure Plan (PSP) approved, large-scale industrial assets have been brought to market by national real estate and advisory firm LAWD, in conjunction with JLL.

Positioned in Melbourne’s booming northern corridor, 910 Donnybrook Road (10.89 ha) and 960 Donnybrook Road (76.45 ha) are adjacent vacant land assets that are available individually or in-one-line by way of an Expressions of Interest campaign closing Wednesday 10 August at 3pm. 

LAWD Senior Director of Development Transactions & Advisory, Peter Sagar, said the development-ready listings provided a valuable opportunity for a prospective developer to secure land in Melbourne’s limited market. 

“Melbourne is currently experiencing unprecedented occupier demand and record low vacancy that is underpinned by e-commerce demand, onshoring and population growth,” Mr Sagar said.

“As a result, there is clear scope to capitalise on current and forecasted rental growth in a highly constrained land market and we expect these opportunities to receive significant interest from a buying pool including major institutions, large privates, developers, and syndicates.”

In particular, 960 Donnybrook Road offers a premier institutional-grade business park (STCA) development opportunity, with premium exposure, scale and proximity to major transport linkages and services. The site features major frontages to Donnybrook Road and linkage to the nearby Hume Freeway, providing the ability to line haul freight to Sydney overnight. On a combined basis (with 910 Donnybrook Road), the asset will have access to a major intersection on Donnybrook Road and provide additional scale which will appeal to institutional investors.

“While the northern corridor currently benefits from extensive existing infrastructure, such as the Hume Freeway, Somerton Intermodal Terminal and Melbourne Airport, there are also 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,” Mr Sagar said.

Over the past two years, industrial land consumption and development in Melbourne has reached record highs, coinciding with the fast-tracking of major transport projects and broader infrastructure improvements. 

JLL Head of Logistics and Industrial, Matt Ellis, said Melbourne was a highly land constrained market and where unlocking development ready assets of scale was becoming increasingly challenging.

“Estimations show there is approximately only three to six years of forecasted supply remaining in Melbourne’s North based on consumption rates,” 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.”

For more information, contact LAWD Senior Director Peter Sagar on +61 414 843 854, Paul Callanan, +61 478 652 468, or Darcy Tobin +61 433 644 166. From JLL, Matt Ellis, Mario Moscon and Anthony Cannizzaro have been appointed to the sale.