The iconic Abbotsford Biscuit Factory/Warehouse could soon garner up to $35 million in a mega transaction as per reports. This site was formerly home to Weston’s Biscuit Factory and has been leased till the year 2028 to Australia Post while Honeywell has a lease till the year 2021. This plot is now available in the market and could fetch a good sum of money. Buyers may use this plot for a mixed-use development which could boost both residential and commercial realty segments in Melbourne over the next few years.
The two-storeyed building is used by Australia Post for mail handling and parcel based operations. The building covers 8, 000 sq. metres and has been put up for sale. Several big-ticket deals have taken place in recent times including the distribution facility owned by Woolworths for a whopping $91 million and a site formerly owned by HP on the Burwood Highway.
There should be excellent responses and high demand from real estate developers and investors for this plot, especially those who have been interested in purchasing similar property over the last year. The market in the region has lower supply levels of development sites and there is high demand for medium-density housing projects here.
Abbotsford offers a centralized location and hence demand is even higher for properties in multiple segments. The warehouse was originally built by Weston’s Biscuit Factory back in the 1950s and the company kept its operations running till the early 2000s as well. The plot covers almost 10, 000 sq. metres and was converted into an industrial facility and two-level office building in the year 2009. This plot offers good investment prospects and can be redeveloped into a mixed-use venture with huge potential for residential ventures. The site is located just 2 kilometres away from the Melbourne city centre.
The recent growth of the population in Melbourne has spurred a transformation in several industrial inner suburbs in Melbourne and Abbotsford has now attained the limelight with its future development potential. Expressions of interest will be closed on the 26th of September, 2018, for this warehouse and a big-ticket announcement may be in the works. This deal could change the dynamics of the real estate market in Melbourne over the next year or two.
