Dexus is paying $188 million for three industrial development sites on Australia’s east coast.
The biggest property by area, in Ravenhall, Melbourne, covers 127 hectares immediately south of Caroline Springs – a 19-year old suburb which shares a postcode with Deer Park.
Some 26 kilometres west of the CBD, 11-167 Palm Springs Road will be jointly controlled by Dexus with the Dexus Wholesale Property Trust (DWPT). The new owners plan to replace the holding with up to 380,000 square metres of industrial property, carrying an end value of about $480 million. Construction is set to take place over the next five to seven years.
Dexus said in this statement yesterday that the Ravenhall parcel is “set to benefit in the medium to long term from its proximity to the proposed Western Intermodal Freight Terminal.”
In New South Wales, the property giant is buying a 10-hectare brownfield site in South Granville, about 23 kilometres west of Sydney, for $61.5 million. Over the next two years Dexus plans to build 54,000 sqm of industrial stock – an e-commerce hub – in up to four buildings at 54-68 Ferndell Street. All up, it expects the redevelopment’s end value to circle $140 million.
The smallest acquisition, by land size, is in Queensland’s South Brisbane region. Close to another asset DWPF controls (the Drive Industrial Estate which was completed in 2015 and is now fully leased), the new nine hectare property is at 425-479 Freeman Road, Richlands – about 16 kilometres from the Brisbane CBD.
Over the next two to three years, Dexus said it planned to construct about 52,000 sqm of industrial buildings. The end value attached to this redevelopment is about $90 million.
Dexus said that since 2010, it has developed and leased 39 industrial development projects across 730,000 square metres in Sydney, Melbourne and Brisbane.