Frasers Property has snapped up a strategic industrial site near Melbourne’s Wholesale Fruit and Vegetable Market in Epping in a $40 million deal with a private landowner.
The acquisition marks the Singapore-listed group’s most recent excursion into the city’s northern industrial suburbs, giving it a footprint from east to west across the city in a market dominated by construction, distribution and food users.
Vacancy in Melbourne’s northern industrial market for buildings larger than 5000 square metres is sitting under 2 per cent.
The land at 410 Cooper Street stretches to O’Herns Rd in the north and abuts the Hume Freeway between two full diamond interchanges.
Frasers southern region general manager Anthony Maugeri said master planning for a new industrial estate had begun with the first stage to hit the market in mid-2109.
“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 estate will house up to 250,000 sq m of warehouses.
Other large land occupiers in the area include Mainfreight, Mission Foods, Chemist Warehouse, Visy, Coles, Bluestar Logistics, Linfox and Toll.
Michael Green from Cushman & Wakefield, who brokered the deal, said land values had increased 30 to 40 per cent in the area over the past year.
Earlier this year, Frasers paid racing and property identity Lloyd Williams’ company Hudson Conway about $19 million for a parcel of industrial land in Braeside.
The 23-hectare site on Governor Road was a natural extension of the group’s 116-hectare The Key Industrial Park in Keysborough, which is fast approaching completion.
Midway through the year, the group signed packaging giant Visy Australia on a 20-year lease to move into a purpose-built $46 million manufacturing and distribution centre in its West Park Industrial Estate, in Truganina.