Woolworths asking $100m for Melbourne distribution centre

The Victorian distribution centre and head office of supermarket giant Woolworths has been put on the market, with an asking price of around $100 million.

The Wellington Rd property, strategically positioned between the Monash Freeway and EastLink, presents as one of the year’s largest industrial offerings, with the Mulgrave site spanning 19ha of prime suburban land.

The site, 21km south-east of Melbourne’s CBD, is owned by Growthpoint Properties Australia and includes a 68,144sqm office and distribution centre, which was purpose-built for Woolworths.

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Woolworths currently leases the facility for $4.7 million annually, with a number of five-year options potentially able to be exercised.

CBRE and Dawkins Occhiuto are jointly marketing the property, with CBRE’s Chris O’Brien saying it ticks a number of boxes for major investors.

The facility was purpose-built for Woolworths.

“This is one of the biggest sites in Melbourne’s south east to be offered for sale, offering both an attractive opportunity to capitalise on its current investment profile with an A-grade, ASX-listed tenant or potentially further develop it for an alternative use in the medium to long-term,” O’Brien says.

“The opportunity to secure such a substantial landholding in this tightly held and established inner south east location is anticipated to attract interest from long term developers that will look to capitalise on its underlying land value.”

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The distribution centre is just moments away from the Waverley Park football ground, which was decommissioned as an AFL/VFL venue and transformed into a residential precinct, as well as Hawthorn Football Club’s training facility.

The Woolworths property also has 38,000sqm of surplus land.

It is being offered for sale via expressions of interest, which close on November 2.