Wednesday 28 October 2015
Property developer Pellicano has scored its first pre-lease deal at the $350 million Innovation Park, its 74-hectare Dandenong South business park.
Cyclone Tools, one of Australia’s biggest remaining garden and tool manufacturers, has signed a seven year lease for a 16,200-square metre facility in a deal worth $15 million.
Interest in the park has been so strong that Pellicano is moving ahead to prepare the final stage land release to 12 lots. Seven of those, equating to 28,000 square metres, have sold in the past four weeks.
This brings the number of sales at Innovation Park to 55 out of 61 released lots.
Pellicano managing director Renato Pellicano puts the park’s popularity down to its strategic location near major transport routes. It is close to the Western Port Highway, Eastlink tollroad and Frankston-Dandenong Road.
“Dandenong, just 30 minutes south-east of the CBD has lured companies such as Bosch, BlueScope and Salmat,” Mr Pellicano.
After nearly 50 years in the construction business and 30 years developing master-planned business parks, Pellicano now has 290 hectares of industrial land under development. It holds 1.42 million square metres of vacant land for future development.
While it sells some of the land on its estates, it retains some for its own investment. The family company’s property portfolio includes more than 190 properties and 290 tenants. This year’s BRW Rich Families lists put the Pellicano fortune at $312 million.
Most of its holding are in Melbourne’s south-east suburbs but it also has the Orbis Business Park in Ravenhall in the north-west and the Parkwest Business Estate in Ipswich, Queensland.
The M1 and M2 Industry Parks in Dandenong South occupy around 120 hectares. M1 is about 95 per cent built and occupied.
At M2, A&L Windows and Doors have expanded their facility by an extra 12,600 square metres, taking their total space to 25,000 square metres, Mr Pellicano said.
Pellicano also has a 51-hectare estate on Warrigal Road in Moorabbin, the Parkview Estate, where it has started building a 3200-square-metre strata office development.
Parkview Estate is Pellicano’s most developed business park.
“Caesarstone had recently committed to a 4200-square-metre facility within the state which leaves just four existing lots available,” he said. “On the other side of the CBD, BTI Logistics has committed to a pre-lease for an 8500-square-metre facility at Orbis Business Park.”
Pellicano has also started constructon on a retail hub for Orbis which will offer four shops for lease and include a children’s play area.
Pellicano has three apartment projects worth $179 million, consisting of 360 apartments, on its workbook – two in Brisbane and one in Melbourne.