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News release


Metro Trains lease 3,865 sqm of office, 4,600 sqm of workshop, 12,000 sqm of hardstand space in Clayton

Commitment to approximately 20,465sqm of mixed use space represents continued positive momentum from infrastructure investment in Victoria

Metro Trains together with Lend Lease has secured 3,865sqm of office, 4,600sqm of workshop, 12,000sqm of hardstand space including 413 car bays to occupy 610 Heatherton Road, Clayton on a 3 year lease term. 

Metro Trains will take over the remaining three years of the Zinfra Group’s lease term, with the annual gross rental of the facility in the vicinity of $2.6M.

The Metro Trains rail project is a Victorian State Government initiative involving the removal of 11 level crossings in Melbourne’s South Eastern suburbs.

The relocation has enabled Metro Trains to consolidate their office accommodation, utilities and service vehicle workshop into one premise all within close proximity to the south eastern rail network.   

JLL Directors of Office Leasing Joshua Tebb and Andrew O’Connell negotiated the deal on behalf of Frasers Property Group and Zinfra Group.

Mr Tebb said, “In 2015, the Victorian Government detailed plans to spend $22 billion on infrastructure projects and create over 100,000 new jobs in four years.  We expect the rollout of government related infrastructure projects to have a direct impact on leasing demand, as projects elect to consolidate resources into single premises”.

According to the ABS, public sector job vacancy has increased by 26.2% in the year May 2015 – May 2016, with a total of 16,500 roles available in May 2016.   Infrastructure investment is contributing to growth in public sector jobs and has the ability to enhance the productivity of the economy in both the short and long term. The investment has a multiplier effect throughout the economy, contributing to both social and environmental improvements.

Victorian JLL Research report that the Melbourne South Eastern Suburbs office market net absorption bounced back strongly with positive net absorption (23,670sqm) in 2Q16 and vacancy tightening to 12.1%. Leasing activity within the industrial sector also remained solid in 2Q16, with 142,600sqm of gross take-up recorded. 

JLL Victorian Research Director, Annabel McFarlane said “2016 is on track to be another strong leasing  year with 339,260 sqm of industrial space recorded in the first half of the year, compared to a ten year average of 550,000 sqm pa. “Businesses classified as either transport, logistics or retail trade dominated this quarter with 76% of area taken up in these sectors," Ms McFarlane added.