Land shortage drives another new deal for Vaughan
The MBAVs recently crowned Master Builder of the Year, Vaughan Constructions, has completed its $55 million, 81,000 square metre, Hammond Business Park at Dandenong South with a deal worth more than $8.5 million to construct a new purpose-built facility for promotional products supplier Dex Collections.
The completion of the estate came with a flurry of design and construct deals negotiated by Vaughan over the last six months on the back of a critical shortage of industrial land and buildings in the south-east industrial market which has driven a significant escalation in land values.
According to Vaughan’s Development Manager in Victoria, Chris Telley, the south-eastern market was experiencing the greatest lack of quality industrial buildings in a decade, a shortage which had been exacerbated by a lack of available land.
``As a stronger Victorian economy moves into a higher gear, driving manufacturing and logistics industries, and as residential demand continues to grow and take industrial land, we face even greater shortages particularly around the key transport nodes and especially along EastLink and that’s going to mean ongoing upward pressure on land values,’’ Mr Telley said.
He said Dex Collections would take advantage of the first rate road transport links that the estate offered with quick access to Eastlink.
``The location together with the modern warehousing facility should deliver a significantly enhanced operating performance across the business,’’ Mr Telley said.
The purpose-built facility will comprise 4,905 square metres of office, showroom and warehouse space, concrete hard stand, a loading yard and 74 car spaces on a 13,031 square metre site on the corner of Hammond Road and Rodeo Drive.
According to Crabtrees Real Estate’s Andrew Loudon, who negotiated the deal, the transaction was a great outcome for Dex in catering for the firm’s exponential growth.
``We had been working with Dex Collections for some time searching for an ideal facility that would not only cater for the expansion of their business but would also support their logistical requirements.
``Knowing the calibre of the projects Vaughan Constructions undertake and the upcoming allotment in Hammond Business park, this introduction was a perfect fit,’’ Mr Loudon said.
The transaction brings to circa 32,000 square metres, worth a combined $40 million plus, the projects now under construction in completing Hammond Business Park, the land for which Vaughan purchased in 2015.
The design and construct deals for office, warehousing and manufacturing facilities, also include those for national wholesale fresh food distributor Bidfood for a 6534 square metre facility, timber veneer distributor Timberwood Panels (4800sqm), and a leading Australian beverage manufacturer (15,440sqm).