LOGOS and Ivanhoé Cambridge, with Hume City mayor Joseph Haweil, have turned the first sod, marking the start of construction, at a $230 million industrial park north of Melbourne.
Broadmeadows Logistics Estate is replacing a 25 hectare site, 120 Northcorp Boulevard, which was between 1999 and three months ago occupied by Woolworths as a distribution centre.
The owners paid Growthpoint $50.2m for the property last August – a counter-cyclical time, shortly after treasurer Josh Frydenberg announced Australia would likely enter recession, which it did, in September.
The vendor had also earmarked a redevelopment but, given the backdrop, classified the parcel as a non-essential capital project, and sold it.
Existing warehouses, containing 60,044 square metres and earmarked for demolition, cover a relatively small portion of the block; there are also 344 car parks and two large vacant tracts, one abutting the Upfield train line.
Broadmeadows is about 17 kilometres from the city.
Broadmeadows Logistics Estate
Upon completion, Broadmeadows Logistics Estate will contain 120,000 sqm of product.
Configurations will be between 15,000-50,000 sqm; all of it is now for lease (story continues below).
LOGOS head of Australia and New Zealand, Darren Searle, described the property as a strategic infill Melbourne investment.
“We have been receiving strong interest from new and existing customers for prime grade logistics assets in the north of Melbourne over the past few years and the Broadmeadows site provides us with a well-located property to cater to this demand and also service the airport precinct overflow,” the executive added.
“We are excited to be starting work on the estate, which is our seventh development in Melbourne.
“Our focus will be on supporting the core logistics sectors of e-commerce, distribution, food and cold storage.”
George Agethen, senior vice president, Asia Pacific with Ivanhoé Cambridge – the capital partner – said the project “perfectly fits” its commitment to achieve net zero carbon by 2040.
The business park is targeting 5-star Green Star Communities and 5-star Green Star Design and As Built ratings.
“Sustainability initiatives to be incorporated include recycling 98 per cent of materials from the demolition of the existing buildings incorporating colourbond roofing materials to reduce heat island effect and including a minimum of 98kW solar panels on all facilities,” a statement added.