Apartment developer buys prominent Melbourne factory
It is the end of a 104 year era in Melbourne industrial circles, with Cedar Woods snapping up the spectacularly located ex-Porta Products factory, abutting Fairfield Park, near the Yarra River.
The developer is paying $50 million-ex GST and on terms for the 1.17 hectare parcel, 224-256 Heidelberg Road, Fairfield.
Several buildings with a total of over 300 dwellings are planned for the property, walking distance to the Yarra River.
A campaign launch is scheduled in 2027; the end value should exceed $500m.
“We see Melbourne as an opportunity for counter-cyclic acquisitions of quality sites and are preparing for increased homebuyer demand as purchasers respond to lower interest rates and supportive government policies,” Nathan Blackburne, managing director for Cedar Woods, which also develops commercial product, said.
“Cedar Woods will craft a premium design for the site to make the most of its unique park-front location and uninterrupted views of the CBD and local area,” he added.
The company will fund the purchase with existing reserves.
LAWD’s Paul Callanan, Lukas Byrns and Peter Sagar were the agents.
Premium project planned
The Fairfield site, four kilometre from town, not far from the Clifton Hill/North Fitzroy border, hit the market last September.
The vendor, the occupier of the family business, held over 50 years.
In 2020, it developed a planning scheme for 344 dwellings in five towers, between six and 13 floors.
The marketing agents said given recent planning precedents, including at Alpha Partners and Glenvill’s nearby 16.5ha Alphington Mill, replacing an Amcor factory, the Cedar Woods land could yield taller buildings.
“The site, which is zoned for the intended residential use, will be developed into a mid-rise, multi-stage apartment project…that will command premium pricing due to the sought-after location,” a spokesperson for the buyer said.
“First stage settlements expected in FY29 or earlier, subject to approvals and market conditions,” they added.
“With our strong balance sheet, and favourable macro conditions, Cedar Woods is continuing its strategy of diversification – by product type, price point and location – and strengthening our portfolio with quality sites that we can deploy into an undersupplied market,” according to Mr Blackburne.
“The acquisition comes after the recent announcement on 15 May 2025 of the acquisition of a South Australian site at which the company is planning a premium master planned community project,” he added.
Porta was established in the CBD in 1868. It also has an Epping base on McKellar Way.
The sale comes a week since we reported another family business sold major warehouse across on the road, on land not zoned for residential, and classified Northcote, for $5.5m – also to a developer.
Stonebridge’s Dylan Kilner, Max Warren and Chao Zhang with Gross Waddell ICR’s Danny Clark and Andrew Waddell brokered that deal.
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