This article is from the Australian Property Journal archive
FRASERS Property Australia has acquired 43 hectares of land in Melbourne’s western suburb of Tarneit and will build up to 150,000 sqm of a range of industrial warehousing options with an estimated end value of $200 million.
The group is expecting interest from warehousing and distribution companies as the e-commerce and logistics boom rolls on.
Matt Gillett and Anthony Maugeri from Frasers Property brokered the deal for 917 Boundary Rd, zoned for industrial use and located in a tightly held area.
A development time frame of between three and five years has been pencilled in, with the first stage likely to be brought to the market later in 2020 and comprise small lot sales and pre-lease, speculative and turn key development options.
This is Frasers Property’s second major land acquisition has made in Melbourne within the last 12 months, following the circa $80 million purchase of a 41.3-hectare land parcel in Dandenong South.
According to Knight Frank, available prime grade space across Melbourne has fallen to its lowest volume in five years, and rents have surged by 10% as it achieved the first quarterly take up of more than 300,000 sqm of any city in Australia.
Industrial land values in Melbourne have increased considerably in the last 12 to 24 months, driven by price increases in the south east and west, where Frasers has made its recent major acquisitions.
“We are replenishing our depleted stock in key markets across Melbourne where land values, rents and investment demand is increasing,” Anthony Maugeri, general manager – southern region commercial & industrial, Frasers Property Australia said.
“The well-located Tarneit property further extends our reach in Melbourne’s largest industrial market, where we have held a strong market presence for over 20 years.”
Frasers Property has developed over $1.1 billion dollars’ worth of industrial warehousing including West Park Industrial Estate, Park West Industrial Estate and Access Altona Industrial Estate.
The property offers easy access to Deer Park Bypass, Western Fwy and Princes Fwy, an increasingly vital factor in logistics and warehousing considerations, and the proposed Western Interstate Freight Terminal and Outer Metropolitan Ring Rd are also expected to boost demand in the area.
Frasers Property is nearing completion of its nearby 310-hectare West Park Industrial Estate, and at the end of last year acquired The Grove Estate residential project in Tarneit from Stockland for $202.5 million.
Last month, Frasers Property capitalised on pent-up demand for industrial land in Sydney’s limited market, securing a 15,900 sqm commitment from TTI at a $45 million speculative project in Eastern Creek.
