Nissan is the latest car manufacturer to sell a redundant Australian site, offloading its 11.4 hectare local headquarters and adjoining warehouse distribution centre in Dandenong South, Melbourne, to a private syndicate for a speculated $35 million.
The Yokohama-based giant - which operated a manufacturing plant in Clayton between 1966 and 1992 - plans to expand its workforce and will use the sale proceeds to relocate functions, including offices, to a more modern headquarters elsewhere in the south-east.
The sale of 260-270 Dandenong Frankston Road comes more than two years since Nissan announced it would outsource warehouse and distribution functions to logistics giant Ceva (which in February opened the Truganina facility which would carry out the function, a $80 million single-span warehouse the size of eight MCG-sized playing fields).
As well as a double-storey, 4846 square metre office on a 2.68 hectare plot, the Dandenong South offering includes three warehouses containing a total net lettable area of 27,586 square metres, and a self-contained training centre, on a neighbouring property known as 8-22 Quality Drive.
The building improvements cover just 28 per cent of the total land area, and as such the property was marketed as an "infill development opportunity" to developers or strategic investors which might consider, for example, subdividing.
Interest also came from owner occupiers, CBRE marketing agents Stephen Adgemis and David Aiello said.
About 5 kilometres from the Dandenong CBD - often marketed as "Melbourne's second city" - Nissan's high-profile site has more than 700 metres of street frontage. Mr Adgemis said that industrial rent values in the area have spiked to record levels over the past six months (to now average about $65 per square per annum for secondary-grade stock).
The incoming purchaser, a private syndicate of high net worth individuals not known to invest in property, secured the property following an expressions of interest campaign which yielded more than 80 enquiries.
The existing buildings will be re-offered for lease following a renovation, while the balance of the site will be redeveloped in the medium term.
The deal comes months after food manufacturer Pillsbury Australia sold a 3.2 hectare Mount Waverley plant as a development opportunity for $15 million after receiving 10 offers. Swire Storage also recently sold a site in the south-east - its 3 hectare vacant Clayton headquarters exchanged hands for $16 million.
"Nissan plan to secure a new Australian corporate head office designed to house the business for the next generation, improving culture, facilities and amenity," the company said in a joint press release with CBRE.
Elsewhere in Melbourne, another former car manufacturer, Holden, sold its outgoing Fishermans Bend factory for $130 million last September to the state government, which plans to redevelop it as an industry design hub (workspaces).
Earlier this month, a development group was chosen to transform Holden's 55-year old Adelaide car assembly plant into an innovative business park.
Toyota's last Camry was reported to have rolled off the factory floor in Altona in recent weeks. The Japan-based car group also owns its prime Port Melbourne local office headquarters.
