Vaughan Constructions has sold an unbuilt industrial investment in the western Melbourne suburb of Truganina to Frasers Property Australia.
Reportedly carrying an end value of more than $37 million, the Maker Place complex will include two offices and warehouses with a a combined lettable area of about 31,000 square metres. The development, set to be constructed by mid-next year, also allows for 161 car parks.
Proposed for a five hectare parcel the asset is about 22 kilometres from the CBD.
“As a direct result of the tight supply of land in Melbourne’s west, we have acquired the Maker Place site and will retain it, together with our 12 hectares in West Park Industrial Estate, Truganina, for new purpose-built facilities,” Frasers Property Australia’s general manager for the southern region, Anthony Maugeri, told the Australian Property Journal, which reported the deal last week.
“Demand for prime grade industrial warehousing remains very high. We see this acquisition as an excellent opportunity to continue our speculative development momentum in the west of Melbourne.”
Vaughan Constructions was represented by David Norman, industrial sales and leasing director with Cushman & Wakefield.
Frasers Property Australia – a diversified property group listed on the Main Board of the Singapore stock exchange, acquired Australand in 2014. In the suburb, the investor is responsible for the 310 hectare West Park Industrial Estate, where logistics giant CEVA recently leased its fifth warehouse, via a pre-commitment (an image of an established CEVA warehouse in this estate is pictured, top).
Last week, “logistics property specialist” Logos paid US fund manager Invesco $119 million for the Kmart distribution centre, also in Truganina. This 77,000 sqm warehouse sold on yield of 5.5 per cent following a campaign by JLL’s Tony Iuliano with CBRE’s Chris O’Brien.
In July, Logos paid $38 million for a 27.5 hectare development site in the same suburb, at 285 Palmers Road, and which is now earmarked to become a 160,000 sqm logistics centre.
Melbourne’s western suburbs are considered amongst Australia’s most affordable to buy or rent industrial real estate. The precinct is marketed for being close to both the Port of Melbourne and Melbourne Airport, and serviced by infrastructure including the Western Ring Road and Hume Highway, which connects to Sydney, more than 800 kilometres away.