Melbourne, 21 July 2015 – Automotive giant General Motors Holden (GMH) is set to sell one of Melbourne’s largest brownfield sites on the city fringe, with the offering of a landholding sprawling over more than 37Ha at Port Melbourne.
This site represents predominantly unused land within the greater GM Holden site at Port Melbourne, and does not include Holden’s headquarters located on Salmon Street. Holden will continue as a national sales company with a major dealer network presence long into the future.
CBRE’s Dean Hunt and Matt Haddon have been appointed to sell the 37Ha site in one line via an International Expressions of Interest campaign commencing mid-August, 2015. The sale is proposed to be supported by short term income across some of the 200,000sqm of improvements on site, providing significant benefits for master planning such a significant land holding.
Mr Hunt said the property’s prominent location and significant size would generate strong buyer interest both locally and internationally.
Bordered by Todd Road, Cook Street and Salmon Street, the site represents approximately 30% per cent of the total industrial zoned land at Port Melbourne and is regarded as one of city’s the most tightly held industrial precincts.
Mr Hunt said that following re-zoning changes in Port Melbourne (Fishermans Bend Precinct) in 2012, and the most recent announcements on the employment precincts in April 2015, Fishermans Bend is undergoing one of the largest urban renewal projects in Australia. The plans encompass transforming 455ha of various industrial precincts to a sustainable and appealing community for business and residential use.
“These changes drastically altered the landscape of Port Melbourne, with industrial land supply outside of the GMH site being almost non-existent,” Mr Hunt said.
“This site represents a landmark opportunity to secure not only a significant industrial presence in tightly held Port Melbourne, but to acquire one of the largest city fringe brownfield footprints in Melbourne.”
Mr Haddon said the site’s potential to accommodate a landmark development in such close proximity to Melbourne CBD, South Melbourne and the Bayside precinct would capture the attention of local and international groups.
“Given the significance of this site, experienced development groups are likely to explore opportunities outside of the current zoning parameters, subject to consultation with local and state planning authorities,” Mr Haddon said.
“Whilst the property is currently industrially focused, a collaborative approach with local and state authorities may provide opportunity for diversification of the site, with potential uses including; master planned office business park, large format retail, entertainment/ food and beverage, car sales and service hub, education or university campus. Another great opportunity would be an innovation and technology hub due to its location, neighbouring employers such as DSTO and Boeing.”
The site that is being considered for sale is predominantly land not currently in use by GM Holden, among the Port Melbourne site, and does not include Holden’s current headquarters. The site under consideration has previously been used for Holden’s former engine and foundry operations which ceased operating in 2009.
Mr Hunt went on to say limited industrial land supply and strong demand in Port Melbourne had underpinned a spike in land values of around $950 per square metre along Cooke Street in the sub 2,500sqm category.
“Port Melbourne continues to be a tightly held location across various asset classes and will continue to benefit from the pending gentrification immediately to the east of the GM site,” Mr Hunt said.
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