MaxCap, Troon replenish development pipeline with ex-tip
After selling a swag of recently completed commercial investments over the past two years, MaxCap and Troon Group have replenished their development pipeline with a former Clayton South tip.
The 10.47 hectare Industrial 1 zoned block, 618 Clayton Road, is speculated to be costing $24.5 million.
About 20 kilometres from Melbourne, near the Monash National Employment and Innovation Cluster – the state’s second biggest work zone – and Dandenong, considered the city’s industrial capital, the incoming owners are planning a business park.
Up to 65,000 square metres of product could be delivered, according to the buyers, more if multi-level warehousing is considered.
“There is always some complexity in acquiring these type of assets,” Troon managing director, Tom McInerney, said.
“618 Clayton Rd was a landfill site over 30 years ago and we have undertaken significant due diligence and stakeholder engagement to gain confidence in navigating this complexity with the relevant authorities to deliver much needed supply of high quality product to service the overwhelming demand for last mile logistics,” he added.
The company’s affiliated H.Troon will be construction partner.
MaxCap ventures south
The Clayton South project would be the fourth joint venture for MaxCap and Troon following retail based projects at Chirnside Park and two in Delacombe, Ballarat, one which sold to SCA Property Group (story continues below).
It has also delivered and divested a Mont Albert office, once The Salvation Army headquarters.
The latest development would be the pair’s first in Melbourne’s south.
“We remain bullish about investing in zoned industrial land parcels in prime infill locations across Australia’s east coast which we have been doing for five years now,” the group’s head of Direct Investment, Simon Hulett, said.
“We continue to see effective rental growth in established industrial precincts such as Clayton primarily driven by a vacancy rate of less than one per cent and a lack of new development stock,” he added.
“Whilst demand has slowed from the highs of the pandemic, e-commerce penetration rates continue to grow and the last mile delivery service remains highly competitive,” according to the executive.
“With an established residential population directly opposite the site and proximity to major arterial roads, demand for this location is likely to be strong”.
CBRE’s Daniel Aiello brokered the off-market 618 Clayton Rd sale.
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