12 Koornang Road, Scoresby
12 Koomang Road, Scoresby. Image supplied.
  • Was sold for $16.8M to a owner-occupier
  • This equates to $2,731 per sqm - a record for the area
  • Sale price was 20% higher than what the vendor had been offered prior to sale campaign

As demand continues for warehouse assets across Melbourne, a warehouse in Melbourne’s south east has broken a sale price record.

12 Koomang Road in Scoresby, home to a 6,152 sqm office/warehouse, was purchased for $16.8 million by an owner-occupier from the vendor, Wanslea Terrace Pty LTd.

The sale price equated to $2,731 per sqm – a record for the area.

Knight Frank’s Stuart Gill and Steven Salopek negotiate the deal following an on market Expressions of Interest campaign.

Mr Gill said more than 100 enquiries were received during the campaign from owner-occupiers, investors and funds. Ultimately, seven “highly competitive” were received.

The buyer was an owner-occupier who intends to operate from the site later in the year.

“Prior to the on-market campaign the vendor had received offers brought in from another other agent in the low $14 million range, but our on-market campaign resulted in a sale price of nearly 20 per cent higher,” he said.

“Demand was so incredibly strong due to the ongoing shortage in Melbourne’s industrial market, and the competition for the asset led to an escalation in the price with a record being achieved.

Stuart Gill, Knight Frank

“There is limited supply of industrial property sized at more than 5000 square metres for sale in the south east of Melbourne.”

Mr Salopek added that buyers were attracted to the property given it was a high-quality asset, and is sought-after location close to Eastlink.

“The property also provides the flexibility to subdivide in the future, subject to council approval, to create two smaller warehouses,” he added.

“It is located within the city of Knox’s industrial precinct, in close proximity to Eastlink and Stud Road providing excellent access to Melbourne’s road network.

“The asset also has excellent amenity, being close to cafes, retail precincts and gymnasiums.”

Mondelez, Multicrop, Hallmark Cards, Thermo Fisher Scientific, Bucher, Cummins and CSR Bradford are among the major occupiers in the area.

Knight Frank’s latest industrial research has revealed that vacant space in Melbourne’s south east declined by 16% during the first quarter of this year, down by 11% on a year-to-year basis, due to the surging demand.

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