Landmark Dandenong development opportunity to hit the market

A highly optimised Dandenong super site of circa 8.36 hectares is set to test buyer appetite for major redevelopment undertakings.

“The Island” represents one of the most substantial mixed-use offerings to come to the Melbourne market in recent years.

CBRE’s Trent Hobart, Nathan Mufale, Chris O’Brien and David Aiello have been exclusively engaged by a private ownership syndicate to market the development site via an international Expressions of Interest campaign, due to conclude in mid-November.

The landmark offering is of international significance and comes as the City of Dandenong prepares to add another 28,000 residents over the next ten years, following a $4.1 billion* increase in Gross Regional Product between 2017-2022.

It provides the strategic ability to harness the ongoing growth trajectory of Dandenong, with the property in direct proximity to 227 Pacific Highway, a site recently approved for 30 townhouses, 40 apartments and a prominent retail activation.

“We’re anticipating strong interest from major domestic, interstate and international developers driven by the property’s high growth location and significant development upside,” Mr Hobart said.

“Opportunities of this significance are rare, particularly when you consider the substantial footprint, high profile frontage and unprecedented opportunities it provides.”

In the year to March 2024, new home construction across Victoria sank to a decade low of just over 51,000.

“The Island” would provide for substantial residential development outcomes subject to the relevant planning approvals, harnessing an approximate frontage of 775 metres across the Princes Highway, Heatherton Road, Heatherton Link Road, and Adelaide Street.

This offers substantial exposure to over 60,000 passing vehicles daily, and immediate access to several freeways and core arterial networks.

The site has been pieced together and fully optimised by the private syndicate to comprise multiple titles across two parcels, with numerous access/egress points, plus a strong holding income from various existing commercial improvements. This offers flexibility for potential purchasers and an accommodating window for prospective development feasibilities.

“We’re witnessing significant investment from both public and private enterprises into the Dandenong commercial activity centre. This is one of only seven National Employment and Innovation Clusters statewide, with this opportunity presenting the ability to harness that growth in a major mixed-use undertaking,” Mr Mufale concluded.

“The Island”, Dandenong parcels A & B are being offered individually or together, with the International Expressions of Interest process due to conclude next month.

* Ethos Urban