Cheltenham industrial property sold for $5.815 million to owner occupier

Cheltenham industrial property sold for $5.815 million to owner occupier

A large industrial property in Melbourne’s south-east corridor has sold for just shy of $6 million to a private owner-occupier, as demand in Melbourne’s industrial market remains strong with limited purchase options available.

The sale of the 8,506 sqm site, located at 330 Reserve Road Cheltenham, was managed by Rook Salinger Directors Michael Hayden and David Black in conjunction with CBRE.

It was offered to market via an Expressions of Interest campaign on behalf of the vendor, resulting in multiple offers by the close. Interest was seen not only from owner-occupiers, but also developers interested in industrial strata development. The purchaser will utilise the existing older style factory buildings which total about 4,200 sqm.

A lack of supply of industrial land in the south-east, due to on-going residential rezoning and the development of surrounding infrastructure such as the Southlands train station is generating record sales results. The price achieved for this property equated to about $684 per square metre, which reflects the prime position on Reserve Road.

Acquisitions by owner-occupiers have been an increasing trend in the market, supported by strong fundamentals and the low cost of borrowing.