MELBOURNE, 3 AUGUST 2020

Frasers Property Industrial has secured power tools and garden products company Ozito Industries Pty Ltd (Ozito) as the company’s first tenant in Rubix Connect, its 41.3-hectare industrial estate in Melbourne’s Dandenong South.

Located at the estate’s entrance at 875 Taylors Road, Dandenong South and fronting Fox Drive, Ozito’s facility will comprise an 18,000 sqm warehouse, 1,815 sqm office (two levels) and 97 car spaces. A 15,575 sqm spec facility will also be concurrently built adjacent to Ozito’s premises.

Anthony Maugeri, General Manager Southern Region for Frasers Property Industrial, comments, “We are witnessing a strong flow of enquires from e-commerce related businesses requiring more warehouse space. The DIY home market is also very active which is reflected in Ozito expanding and consolidating its warehouse footprint in Melbourne to meet customer demand.

“The South East region is Melbourne’s most established core industrial market. It is close to a very large population base and has a limited supply of prime rezoned industrial land. This diminished land supply combined with strong tenant demand is leading to increasing land values and rents and decreasing vacancy rates. Pre-lease, land and build packages and land sales options are available in Rubix Connect.”

“A spec facility will also be simultaneously constructed and is available for lease. Over the past few years, we have built several high-quality spec facilities as part of our construction strategy and had great success leasing them on or before practical completion,” he added.

Ozito is moving from nearby Bangholme to accommodate consolidation and expansion of its premises. The new state-of-the-art facility will be designed to achieve a 5 Star Green Star Rating from the Green Building Council of Australia, and will have a 2,000 sqm super awning, five on-grade roller doors and six recessed loading docks with a springing height of 10 metres.

Ozito’s transaction marks the second 20,000 sqm plus pre-lease in the South East this year, where leading sales agents CBRE say there will soon be a critical supply shortage.

Mr Aiello said, “CBRE is pleased to have concluded another significant pre-lease in a market where current vacancy sits at just 1.41 per cent for stock above 4,000 sqm, which is its historical low. Future vacancy remains at just 1.19 per cent or 224,286 sqm, of which 52,337 sqm is actually under offer.

“When compared to Melbourne’s Western suburbs, we have been starved of spec developments. Tenants have had limited choices. There is definitely pent up demand for the high-quality facilities Frasers Property Industrial has planned for Rubix Connect.”

Neighbouring properties include large occupiers such as Woolworths, Jayco, L’Oreal, Mainfreight, Bunnings, Amazon, Dulux and Aldi. The site benefits from close accessibility to Eastlink Freeway and South Gippsland Highway.

CBRE Senior Directors David Aiello and Stephen Adgemis brokered the deal.