This article is from the Australian Property Journal archive
DEVELOPER 888 Property Group is backing the growth of Melbourne’s west and north-west growth corridors, splashing out a combined $200 million on a residential and industrial development sites.
In Bonnie Brook, 28 kilometres north-west of the CBD, 888 Property Group spent $100 million buying the 48-hectare site at 562 to 600 Leakes Road, which could support the development of up to 1,000 homes.
The site is part of the Warrensbrook Precinct Structure Plan, and is near Melton, Caroline Springs, Mount Atkinson, and Woodlea.
“This project marks a crucial step in our growth strategy. The demand for quality, affordable homes continue to rise, and we are committed to delivering a residential community that enhances the lifestyle and liveability of Melbourne’s western suburbs,” said Mike King, founder and managing director of 888 Property Group.
888 Property Group’s acquisition comes hot on the heels of Victoria’s Allan government announcing it would release 27 additional greenfield areas across Melbourne’s outer south-east, north, and west over the next 10 years that could deliver 180,000 new homes. The announcement is in tandem with the state government’s ambitious Housing Statement, released a year ago, which aims for the delivery of 800,000 homes over a decade – and obligations to be fulfilled as part of the National Housing According and Housing Australia Future Fund.
Detached housing starts fell by 10.1% in FY24, official data shows, and while the worst may be over for approvals, construction capacity constraints are likely to provide a drag on any recovery.
Simultaneously, 888 Property Group has purchased a 42-hectare site at 687 Hopkins Road in Truganina, also for $100 million. Acquired off-market, the site undergo rezoning as part of the Chartwell East Precinct Structure Plan and be transformed into an industrial estate.
“This acquisition is a vital opportunity to address critical supply shortages in Melbourne’s industrial market. The Truganina site will deliver a much-needed industrial hub to support the growth of Melbourne’s west, in line with the local structure plan,” King said.
“For 888, the past 13 years has been spent acquiring strategic land holdings around metropolitan Melbourne and delivering planning and rezoning outcomes before divesting them and moving forward with further acquisitions. It is now 888’s intention, having achieved significant financial growth, to deliver both strategic acquisitions in Melbourne’s west,” he said.
Multiple Melbourne sites have been recently acquired for redevelopment into logistics estates. Also yesterday, fund manager and developer Centennial announced it had snapped up a six-hectare infill site in Melbourne’s eastern suburbs for $44 million that it will redevelop.
In Mulgrave, Elanor Investors Group teamed up with PGIM Real Estate to acquire a 19-hectare site homes to a Woolworths storage facility that they will turn into a 113,000 sqm estate, while ESR has recently partnered with Japanese giant Mitsubishi Estate Asia to develop a $175 million industrial estate in Pakenham, and MAB Corporation snapped up more than 32 hectares of former quarry land in Cranbourne East.
