This article is from the Australian Property Journal archive
SANDHURST Retail and Logistics (SRL) has unveiled for a 140 hectare industrial estate in Melbourne’s northern suburbs, looking to take advantage of the demand for distribution and warehousing.
Known as Hendon Park, the former sheep and cattle farm at 25 Vearings Lane was recently acquired by SRL for development into a $500 million estate. It will have 127 hectares in its centre retained for a conservation reserve.
The first stage will comprise land and built-form packages ranging from 10,000 sqm to 50,000 sqm. Melbourne saw gross take-up of over 450,000 in the December quarter, accounting for 55% of national demand.
Previously Sandhurst Retail, the company has been recently renamed to reflect its expansion into industrial and logistics development. It was established two years ago by Tony Johnson, together with Rory Costelloe. Both are executive directors of Villawood Properties.
SRL bought the yet-to-be-built Botanic Ridge shopping centre in Melbourne’s south east for about $14 million. The neighbourhood centre will have 6,000 sqm of net lettable area on 2.5 hectares of land, with a 12-year lease to Coles and Liquorland across 3,770 sqm.
Its Epping estate is targeting a 5-Star Green Star rating and will feature solar power and LED lighting and rainwater harvesting and reuse. It will offer gas access and 24/7 operations, and is expected to benefit from the soon-be-completed O’Herns Road diamond interchange.
The site is 18 kilometres away from Melbourne’s CBD, 250 metres from the Hume Freeway and 13 kilometres from Melbourne Airport.
“As companies continue to adapt and evolve following the e-commerce boom, large-scale and well-connected logistics centres will play an important role in the shifting commercial landscape, as demand for storage, distribution and warehousing facilities grows,” SRL senior development manager Jim Athanas said.
“Industrial land is changing; clients are seeking flexible solutions, sustainable design, larger floorplates, and sites that can support growth and transformation. O’Herns represents this change, and will be supported by a significant investment into the surrounding infrastructure in the coming years.”
SRL development and transactions manager, Rob Mirabello said the northern industrial corridor is a highly sought-after location, with accessibility to both the Hume Freeway and the CBD, connection to main arterials, and ample space for companies to expand into, with the increasingly short supply also driven by the area’s rapid evolution into a major residential corridor.
“Demand will continue to outstrip supply, I expect the vacancy rate in Melbourne’s northern corridor to drop further over the next financial year, particularly given the region’s lack of serviced and titled industrial land.”
