CIP’s Southside Industrial Estate opens
- 100% pre-leased prior to practical completion; six blue chip tenants including Orora and SMYA
- Current Southeast Melbourne industrial vacancy at 0.08%1, reflecting unprecedented occupier demand
- c.300 new jobs for Greater Dandenong area; Greater Dandenong Council Mayor Foster officiates opening
- Designed to a Five-star Green Star – Design & As Built industrial building v1.3 rating.
Australia’s largest listed pure-play industrial fund, Centuria Industrial REIT (ASX:CIP), has officially opened its industrial estate in Dandenong South, with the six unit asset fully leased, illustrating the continuous and prolonged demand for urban infill industrial assets.
The development, known as Southside Industrial Estate, provides 40,529sqm of high quality industrial accommodation across an eight hectare site. Its blue chip tenants, ranging from domestic to international entities, have already begun operating from the premises and reflect the calibre of the development.
Tenant customers, including global packaging businesses Orora and San Miguel Yamamura Australasia Group, demonstrate the rise in ecommerce, onshoring and increased inventory demand for industrial space.
The property is located at 95-105 South Gippsland Hwy, Dandenong South, Victoria and was developed by Cadence Property Group on behalf of CIP as a speculative project across a 20 month development period.
Jesse Curtis, CIP Fund Manager and Centuria Head of Industrial said, “CIP capitalised on a rare opportunity to bring to market additional supply of industrial real estate within Melbourne’s land constrained southeast industrial heartland, where vacancy is currently 0.08%1.
“The strong leasing take up is testament to Centuria’s leasing capability and the quality of our asset, which has been developed to leverage the continuing demand for well located urban infill industrial assets. Additionally, the property’s strong sustainability credentials lend themselves to those tenant customers who are conscious of ESG responsibilities.”
Southside Industrial Estate has been designed to a five-star Green Star rating with sustainability features including a 200 kWh solar PV system, rainwater harvesting to service lavatory water and landscape irrigation, a solar powered hot water system, energy efficient LED lighting and water efficient sanitary fixtures.
Charlie Buxton, Managing Director at Cadence, said, “To completely lease an estate of this size prior to practical completion not only speaks to the quality of the development, but also the high demand for industrial infill space. Space is at such a premium in Melbourne’s southeast and Southside is ideally located near major roads which makes it a very attractive prospect for tenants.”
The development is anticipated to service c.300 new jobs for the Greater Dandenong region when fully operational. The property was officially opened by new Greater Dandenong Mayor, Eden Foster.
Greater Dandenong City Council Mayor, Cr Eden Foster said the industrial development was a welcomed investment to enhance the creation of new employment opportunities.
“Our focus is on rejuvenating Greater Dandenong to create a municipality that supports industrial entrepreneurship and quality outcomes for the south east region. We are excited to see the sustainable construction of this estate locally, as the enhancements for this development align strongly with Council’s strategic priorities,” Cr Foster said.
CIP has a strong track record for developing sustainable, high quality industrial assets. Last year, it completed a $24.3 million facility at 42 Hoepner Road, Bundamba, Queensland, fully leased to Australia Post and Jaycar Electronics. Additionally, CIP partnered with its tenant, Woolworths Group, to double the size of its Townsville Regional Distribution Centre.
Recently, CIP broke ground on a c.$31 million industrial development in Canning Vale, WA, which will provide 12,300sqm in the supply constrained Perth industrial heartland, and will shortly, in partnership with Cadence, break ground on a five unit industrial estate at 90-118 Bolinda Road, Campbellfield, VIC.
Centuria Capital Group (ASX:CNI) manages 15 assets in Melbourne’s southeast on behalf of its investors with this asset adding critical mass to a core urban infill industrial market. With the completion of Southside, Centuria’s Victorian portfolio is now worth $1.8 billion across 43 assets.
Southside Industrial Estate is located 31km from Melbourne’s CBD, 34km from the Port of Melbourne and 50km from the Tullamarine Airport. It provides excellent connectivity to major road arterials including the Eastlink, South Gippsland Freeway and Monash Freeway.
1. Source: Colliers International’s Industrial Market Update, VIC, Melbourne South East. Based on industrial accommodation greater than 3,000sqm (20/10/2022)
Centuria Capital Group secures a $70.6 million industrial logistics facility in North Rocks, NSW, on behalf of US private investment firm, Starwood Capital’s, Last Mile Logistics Partnership (LMLP).
Centuria Capital Group has successfully exchanged conditional contracts to divest two adjoining industrial facilities located at 114 and 120 Old Pittwater Road, Brookvale NSW, which is anticipated to deliver a forecast 13.8% IRR to the assets’ closed-ended fund investors.