Big factory-warehouse asset listed for sale as car industry footprint dwindles near Melbourne
A substantial industrial site in Campbellfield has been listed for sale as the car industry slowly makes its exit from the area.
The property at 76-90 Link Drive is in the National Business Park along the Hume Highway and includes 10,440 square metres of warehouse and office space over a 21,000-square-metre site.
There is an existing lease until September 2017 to Dana Australia, which services the automotive sector and specialises in drivetrain, sealing and thermal products. Dana Australia is a supplier to nearby Ford, which will cease manufacturing at its Campbellfield plant later this year.
CBRE’s Dean Hunt and Lindsay Davidson are marketing the property, along with Ben Hegarty and Michael Green, of Savills.
The property for sale at 76-90 Link Road is in the National Business Park along the Hume Highway. Photo: Supplied
Mr Hunt said the property represented an example of reduction in automotive-based building footprints for occupiers.
“However, the northern sector industrial market has not experienced the oversupply effect that some forecasted as a result of automotive manufacturing closure, putting the area in a strong position,” Mr Hunt said.
The Link Drive site has two street frontages, temperature control in the factory-warehouse, gas and a high power supply, which could be used to support future manufacturing or for storage purposes.
“In a market that is undersupplied with existing buildings for sale in this size category, plus the benefit of the higher replacement cost for a new building, Link Drive certainly appeals to the owner-occupier,” Mr Hunt said.
Mr Hegarty said: “Alternatively an investor may take advantage of the short-term income and receive a high market yield with the foresight to re-lease in a market that has contracting vacancy in this size category.”
