Frasers Property Industrial has paid c$80 million for an industrial supersite in Melbourne’s Dandenong South.
The 41.3 hectare block at 875 Taylors Road is earmarked for a $300 million estate, expected to take shape over the next three to five years.
FPI will seek customers to pre-lease buildings and also construct warehouses speculatively.
The block is one of the few remaining vacant land opportunities in the south-eastern suburb zoned for industrial use, the Singapore-backed company said.
It is about 31 kilometres from the city and near both Eastlink and the South Gippsland Highway.
“The Dandenong South acquisition is a significant strategic purchase for our business,” FPI general manager, southern region, Anthony Maugeri said.
“It compliments Frasers Property’s other well-located industrial land holdings in Melbourne’s north, west and south-east and will further strengthen our position as one of Melbourne’s leading developers of prime industrial product”.
“The ability to offer our customers three key geographic, industrial locations in Melbourne affords us a distinct market advantage to provide more options,” Mr Maugeri said.
The site already has a permit for earthworks and master planning is imminent, the company said.
“The south-east Melbourne market continues to perform as one of the city’s strongest industrial areas. Frasers Property has developed approximately $1 billion worth of industrial estates in south-east Melbourne since 2001”.
FPI recently completed The Key Industrial Park in Keysborough and is in the process of building another, the Braeside Industrial Park, in Braeside.
Savills director Kosta Filinis and Brad Esler sold the property for an offshore syndicate, describing it as “one of the largest land parcels sold in Dandenong in the last 10 years.
Occupants in the vicinity include Aldi, Amazon, Bunnings, Dulux, Jayco, L’Oreal, Mainfreight and Woolworths.
In April, FPI rented half of a 19,886 sqm warehouse it is building speculatively in Braeside to textile company Gale Pacific Group. It also leased a 14,144 sqm office-warehouse in the same suburb to ASX-listed IVE Group (IVE will relocate from another FPA-owned site, in Keysborough).
Late last year the group paid a reported $40 million for a 63.4 hectare rectangle-shaped site in Epping, in Melbourne’s north, which is earmarked for a 250,000 industrial park which upon completion, would contain property with an end value of about $250 million.