Frasers Property Australia has spent about $40 million on a 63.4-hectare site in Melbourne's north that it plans to develop into a $250 million prime industrial hub over the next few years.
The powerful Singaporean developer, which is turning its focus to commercial opportunities as the housing market slows, settled on the 415 Cooper Street site in Epping near the Melbourne Wholesale Fruit and Vegetable Market after it was rezoned for industrial use.
Bordering the Hume Highway feeding into Melbourne's northern suburbs, the site comprises two parcels of former farmland, running from Cooper Street to O'Herns Road that will support 250,000 square metres of new logistics facilities.
Nearby occupiers include Mainfreight, Mission Foods, Chemist Warehouse, Visy, Coles, Bluestar Logistics, Linfox and Toll.
The site sale delivered a lucrative payday to owners the Canzoneri family – led by commercial builder Corrado Canzoneri – and Greg Genis of structural steelmaker Genis Steel. Property records show the two parcels sold for a combined $9.08 million in 2013 and 2014.
"The Epping acquisition is a significant strategic purchase for the business and will further strengthen our position as one of the leading providers of prime industrial product in Melbourne," Frasers manager of commercial and industrial, Anthony Maugeri, said.
"Master planning has started and we expect to bring the first stage of the estate to the market by the middle of 2019. With an estimated value on completion of $250 million, the estate will feature pre-lease development, land and build packages as well as selective land sales," he said.
The sale of the Cooper Street site was brokered by Michael Green from Cushman & Wakefield, who said industrial land values in the north had increased between 30 per cent and 40 per cent in the past 12 months
"Construction, distribution and food users are predominant occupiers of industrial space in Melbourne's north," he said.
Figures from Cushman & Wakefield show just a 2 per cent vacancy rate in Melbourne's northern industrial market for buildings greater than 5000 sq m.
"The north is essentially full and the current vacancy rate, reflects tenants moving around," said the agency's national research director, Tony Crabb.
Speaking as part of the Singapore-listed group's results announced earlier this month, Frasers Property Australia boss Rod Fehring said the make-up of its Australian business would be far less dominated by residential in 2020 and 2021.
Its only major residential landbank is a small parcel in Carina in Queensland approved for 185 units.
by Jessica Hammoud in Latest News
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