ESR buying 79ha Cranbourne West industrial site: sources

The Cranbourne West site was listed for public sale last year with price hopes of $75-90 million.

ESR is speculated to be spending more than $75 million on an industrial development site in Melbourne’s south east.

The 78.8 hectare parcel, 590 and 620 Western Port Highway, Cranbourne West, has been held for decades by the renowned Kelly farming family.

Cameron’s Ben Cooper, Angus Clark and David Johnson closed an expressions of interest campaign for the property last October.

Well placed industry sources say a deal to the logistics giant has been underway this year.

The vendors had previously tried to have the land gazetted for housing.

Great place for a master-planned business park: agents

Promoted as Tullamore Business Park – “quite possibly the most strategic industrial land acquisition in Melbourne’s booming south east corridor for the foreseeable future” – the site is zoned Urban Growth 1.

With 850 metres of highway frontage, the brokers said the property could be master-planned as an industrial hub to rival Dandenong South – which is about four kilometres away to the north (story continues below).

This pocket, near Salta’s Nexus Dandenong South Industrial Estate, is 32kms from Melbourne.

Aldi, Amazon, Bunnings, Dulux, Jayco L’Oreal and Woolworths occupy investment grade industrial assets in the area.

GIC, ESR and the $1bn Australia Development Partnership

Hong Kong headquartered ESR recently announced plans for a $1b fund which aims to acquire development sites which could make way for logistics assets.

Last week, we reported GIC tipped $400m into that trust, ESR Australia Development Partnership, which will be seeded by Sydney assets, Horsley Logistics Park and Leppington Industrial Estate.

The pair also co-control ESR Australia Logistics Partnership – which aims to buy income producing real estate.

Last December, ESR sold Singapore listed The Straits Trading Company a 2.25ha business park in Mulgrave, in Melbourne’s south east, too, for $24m.

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Marc Pallisco

A former property analyst and journalist, Marc is the publisher of realestatesource.com.au.

Marc Pallisco