New recruit grows CBRE’s footprint in Dandenong South industrial market

Strong demand for industrial & logistics facilities in Dandenong South has underpinned the sale of two properties for a combined price of close to $10 million. 

Direct Mail & Marketing has divested its distribution facility at 9-15 Vision Street for $4.92 million via a sale and leaseback arrangement. Constructed in 2016, the property comprises a GLA of 3,439sqm. It was sold via Expressions of Interest with a five-year WALE and on a yield of 6.29%. 

In the second transaction, a private investor has purchased a 3,909sqm property at 56-64 Thomas Murrell Crescent from Endeavour Corporation (Australia) Pty Ltd for $4.8 million – reflecting a yield of 7.92%. The industrial 2 zoned property is anchored by Australian Paper Recovery.

The sales were managed by CBRE’s James Jorgensen and Ben Hegerty, together with the team’s newest recruit, Tim Homes. 

Mr Homes, who joins the CBRE team with more than 20 years of experience in the commercial and residential sales and leasing field, said the transactions highlighted the strength in demand for industrial property in Melbourne’s south east. 

“Across the two campaigns, we received more than 50 enquiries from a range of prospective buyers, including both local and interstate – highlighting the demand for investment grade industrial property in this sought-after precinct,” Mr Homes said. 

“Dandenong South remains one of Melbourne’s most attractive industrial & logistics precincts, with a lack of supply in this tightly held market underpinning continued capital growth. This is also starting to translate to the rental market, with super prime rents now over $95 per square metre – $100 per square metre. 

CBRE’s Mr Jorgensen said the appointment of Mr Homes highlighted the firm’s growing presence in Melbourne’s south east industrial & logistics market. 

“Tim is a welcome addition to our team, bringing a specialised skillset focusing on tenant investment opportunities in Melbourne’s growing industrial precincts,” Mr Jorgensen said. 

Mr Homes has previously worked with Colliers and Knight Frank and has spent the past five years specialising in sales, leasing, advisory and property acquisition in the UK.