Prime industrial rents range from $70 to $80 per square metre in Melbourne’s north with incentives between 15 to 25 per cent, according to a Savills report.
Mazda will move from a smaller warehouse and office space at 880 Cooper Street in nearby Somerton, highlighting a major theme in the industrial property sector – consolidation by retailers and manufacturers into larger and more modern distribution facilities.
William Kerr and Peter Kerr from Kerr Group brokered the Mazda transaction.
The 63.4 hectare estate, which neighbours the Melbourne Wholesale Fruit and Vegetable Market, is expected to have an end value of $306.5 million when completed by 2027.
Alongside the new Mazda facility, Frasers will simultaneously develop three speculative buildings in 4Ten Epping across almost four hectares with an end value of about $50 million.
Anthony Maugeri, general manager, southern region, for Frasers Property Industrial said the bespoke facility would almost double Mazda Australia’s warehouse footprint.
“It is strategically positioned within close proximity to major road arterials, including the Hume Highway, and is located between two full diamond interchanges, allowing unparalleled access to Melbourne’s northern suburbs,” he said.
