MAB snares 45ha Melbourne employment site

The 32.6 hectare component carried price expectations of $50-$55 million when listed in February.

MAB Corporation has snapped up three adjoining Thompsons Road, Cranbourne East, sites with plans for a $400 million logistics park.

In the priciest deal, the group is paying a speculated $55 million-plus for a 32.57 hectare farm (about 29.97ha of which is developable) covering #1568 and #1580A.

In a smaller transaction, the company is outlaying more than $20m, according to sources, for the neighbouring 12.2ha tract – #1550 – which includes a Boral quarry.

Both parcels are affected by the Croskell Precinct Structure Plan, which would allow 305ha of rural property between Narre Warren and Berwick-Cranbourne roads to be repurposed for business/commercial and low density residential use.

Business park planned

MAB said the Cranbourne East properties have the benefit of established infrastructure, including an already duplicated Thompsons Rd, as well as access to retail and a “booming” residential catchment.

“The sites, when fully developed, will ultimately comprise over 180,000 sqm of state-of-the-art industrial and logistics space,” it added, in a statement.

“MAB will now commence work with the Victorian Planning Authority to complete the PSP”.

LAWD’s Peter Sagal, Paul Callanan and Darcy Tobin, who brokered the 1568 and 1580A Thompsons Rd deal, said six offers came in (story continues below).

The Bunnings at the entrance of MAB’s Elements estate sold in 2020 for $42.3 million.

MAB grows industrial development pipeline

MAB general manager, Commercial and Residential, Michael Martin, said the company has been actively seeking building blocks in key regions, but the market is competitive.

The Cranbourne East acquisitions expand the group’s industrial development pipeline to over 1066ha, he added, with sites elsewhere in the south east, including the 38ha Elements Business Park at Clyde North (which includes a Bunnings that sold in 2020 for $42.3m), as well as the northern suburbs and Geelong.

Once these parcels are developed, MAB’s portfolio is estimated will be worth over $10 billion.

“The pandemic has caused some increased uncertainty in some of the traditional real estate asset classes over the past 24 months and as a result we have witnessed demand pivot to industrial and logistics assets at the development stage, which has been largely driven by the growth of e-commerce,” Mr Sagar said.

“We congratulate MAB on securing one of the last remaining landholdings of this size and prominence within the booming growth corridor and we look forward to following its transformation journey into a major industrial hub,” he added.

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Marc Pallisco

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