This article is from the Australian Property Journal archive
VICTORIAN Treasurer Tim Pallas was joined by other state, federal and local members of parliament at the opening of Centuria Industrial REIT (CIP)’s new industrial estate in Melbourne’s north, which is delivering more than 45,000 sqm of super-prime warehousing to a region with just 0.7% vacancy.
The $116 million M80 Connect estate is owned by CIP and was developed by Cadence Property Group in conjunction with Centuria’s in-house development team, and delivered by builder Texco Construction.
Located at 100 Bolinda Road, 15 kilometres from the Melbourne CBD, the facility provides five warehouses totalling 45,375 sqm within a 7.92 hectare site offering direct access to the Metropolitan Ring Road.
It has been opened with around 56% already leased to power infrastructure and critical equipment enclosure specialist, EnerSys Group Australia & New Zealand, and global logistics company LX Pantos.
Remaining units include Warehouse 2, of 9,303 sqm, and Warehouse 3, of 10,528 sqm.
Industrial take-up in Melbourne was up 14.8% in the December quarter to 270,713 sqm, with the 2023 total at 998,897 sqm.
Daniel Eramo and Joe Brzezek from CBRE together with Robert di Natalie and Krista Hibert from JLL are the appointed leasing agents.
“The growing industrial sector is a significant contributor to our state’s economy,” Pallas said.
“Developments like M80 Connect give Victorians confidence about our economic future – supporting jobs, keeping local communities strong and encouraging businesses to invest and expand their workforces.”
The e-commerce boom that turbocharged demand for warehousing has powered the industrial and logistics investment universe to worth nearly $300 billion, on par with the office sector for the first time, and has it poised to become the largest traditional commercial real estate sector outright.
When fully occupied, it is expected the estate will deliver 280 new jobs, in addition to the 450 to 675 jobs generated during the property’s development.
Federal Member for Calwell, Maria Vamvakinou, said the development will “help deliver economic growth locally across the supply chain, as well as create the jobs required to revive Australia’s advanced and sovereign manufacturing capabilities.”
Naim Kurt, Mayor of Hume City Council, said “Centuria’s commitment to Campbellfield underscores the strategic location Hume City Council holds for businesses, as a gateway to major freight terminals, highways and the Tullamarine Airport.”
The estate is 10 kilometres from Airport and 17.5 kilometres from the Port of Melbourne, and provides access to a population of more than 4.5 million people within a 60-minute drive time.
In the past three years, CIP has developed more than $200 million of industrial assets in Victoria. It is one of Victoria’s largest industrial landlords with a portfolio of 32 assets worth circa $1.4 billion.
Across the next five years, it has identified a $1.0 billion development pipeline nationwide.
M80 Connect is the second development delivered by a partnership of Centuria and Cadence Property Group, following completion of Southside Industrial Estate in Dandenong South.
Also at the opening were State Member for Broadmeadows, Kathleen Matthews-Ward MP and State Member for Greenvale, Iwan Walters MP.
