This article is from the Australian Property Journal archive
FRASERS Property Industrial has spent $87 million on a development site in Craigieburn, with plans to establish a new masterplanned estate in Melbourne’s north.
The 41-hectare land parcel at 50-70 Kinloch Court, around 25km north of the CBD, includes a net developable area of over 33-hectares and represents one of the last remaining major industrial land holdings in the Craigieburn North Employment Area Precinct.
“We are excited to acquire another prime industrial development in this fast-growing Melbourne region,” said Andrew Hanna, general manager of Victoria at Frasers Property Industrial.
“The acquisition aligns with our aim to boost our development pipeline in well-connected corridors close to transport and worker populations, which this strategic location enables.”
The property also sits north of its 4Ten Epping Premium Estate, which has experienced strong leasing demand, with the Craigieburn North Employment Area Precinct one of Melbourne’s strongest rental growth corridors.
“We will build on the momentum we have created at our nearby 4Ten Epping estate, which has received significant demand from diverse customers, added Hanna.
“Melbourne’s north is continuing to undergo significant transformation, with substantial investment in local infrastructure including the North-East Link and inland rail projects set to further increase accessibility.”
Frasers acquired the site from Cadence Property Group and private vendor Linkage Property, with CBRE and Savills facilitating the transaction.
“In the 2022 calendar year, Melbourne’s North experienced its highest level of lease absorption on record at 452,000 square metres and we are on track to improve on that in 2023,” said Daniel Eramo, director at CBRE.
“With a chronically low current vacancy rate of 0.85% in Melbourne’s North, the acquisition presents Frasers Property Industrial with a significant opportunity to capitalise on increasing occupier demand through the development of super-prime grade facilities within a fast-growing key logistics hub.”
Cadence Property Group and Frasers Property Industrial will also deliver a suite of infrastructure to the Craigieburn North Employment Area Precinct.
“We are thrilled to be working alongside Frasers Property Industrial to deliver the infrastructure in the Craigieburn North Employment Area Precinct and the mutually beneficial transaction is a big vote of confidence for the area,” said Charlie Buxton, CEO at Cadence Property Group.
“We strategically acquired around 100 hectares in the Precinct over the last two years and this deal is reflective of our approach of staying flexible with how we deliver and monetise our holdings over time. Together with this transaction, we are continuing to develop our adjoining 65-hectare, $650 million industrial estate, Kinetic Business Park.”
The transaction is in line with Frasers Property Industrial’s strategy to grow its development pipeline in tightly-held areas across the Eastern seaboard, adding to the company’s 2.2 million sqm strategic land bank in Australia.
“More occupiers and investors are recognising the operational benefits of the Craigieburn North Employment Area Precinct and its unrivalled access through Australia’s Eastern Seaboard,” added Eramo.
“This, coupled with major infrastructure projects including the NorthEast Link, Somerton Intermodal and the Beveridge Intermodal Freight Terminal, are further cementing Craigieburn as a long-term strategic solution for industrial facilities in Victoria.”
