Colliers International negotiates record-breaking industrial site sale
July 13, 2012
Colliers International has facilitated the largest single purchase of industrial land in the Melbourne west market for more than three years.
Nathan Bingham and Stephen Newsham, of Colliers International, have negotiated the sale of a significant industrial site at 169 Australis Drive in Derrimut to a private investor for $4,650,000.
“This 5.6ha site was sold post auction and it is envisaged that the buyer will design and construct a distribution centre,” Mr Newsham said.
“This will be ideal given the popularity of the area with major corporates and key transport and logistics operators, due to its proximity to the freeways and easy access to the CBD.
“The sale represents the largest single purchase of industrial land in the western market for more than three years.”
Mr Newsham said the price showed a decline in values for major parcels of land on the back of global economic uncertainty and overall market sentiment, particularly given the reluctance of banks to lend on non-income producing assets.
“It is also a reflection of where land values need to be for feasibilities to stack up for the development of major distribution centres,” he said.
“Generally speaking, we have witnessed a lack of appetite for parcels of land of this size, no matter what the price, for some time.
“However, recently we are enjoying increased activity from purchasers in this sector of the market, and the opportunity is there for vendors to capitalise if they are realistic on price.”
The property was offered for sale by auction on March 29, with the sale concluded last week following lengthy negotiations with the eventual purchaser.
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