Charter Hall take Dandenong South Industrial Site
Charter Hall secured another industrial site in Dandenong South picking up 282 Hammond Rd for $30.9m.
The property which sits on the corner of Hammond and Brookes Drive covers some 6.8 hectares and contains 20,000sqm of buildings.
The acquisition by Charter Hall was managed by JLL.
The Vendor, Greencare Developments will take a 20 year triple net lease back on the asset, leading to a yield for Charter Hall of 5.38%. Greencare is one of Australia’s leading creators and manufacturers of eco-responsible formulations for cosmetics and household cleaning products which are distributed via major retailers and on-line in Australia and World Wide.
Dandenong South has seen a significant increase in industrial activity with strong tenant demand. The area's proximity to labour and distribution channels across Melbourne provide the area with a strong competitive advantage.
The Charter Hall Prime Industrial Fund (along with two other Charter Hall Fund) also own the nearby Dandenong Distribution Centre which it acquired in 2015 and has built a Distribution facility for Woolworths. Charter Hall are also developing out the Power Park Industrial Estate in Dandenong South, whilst Frasers acquired 41ha of land on Taylors Rd in April 2019 which is currently being expected to be developed over a three to five-year horizon from 2020.
Dandenong South has seen a significant increase in industrial activity following the Dandenong Council's expansion of the industrial land under the Lyndhurst Structure plan. The current supply of development land is likely to be sufficient for the next decade. A 2016 study by the Council identified about 800ha of available future land supply, sufficient to satisfy the market till 2036, but that new industrial land will be required by 2029 to avoid market friction.