Stockland has teamed with Mt Atkinson Holdings – led by a consortium of Melbourne businessmen – to create a $2 billion commercial park, set to be the largest industrial project in that city’s west.
It is hoped the 260 hectare site, 25 kilometres from the CBD, in Truganina, will also become the city’s largest and most innovative future logistics project.
Melbourne’s western suburb industrial market is unique – being amongst the cheapest in the country in which to own or rent – but also, arguably, the most effectively located, between Melbourne Port (35 kilometres away), Melbourne Airport (27 kilometres) and the city’s road and rail infrastructure.
As Avalon Airport near Geelong increases its freight dealings, suburbs like Truganina, 43 kilometres from it, are expected to become even more attractive to users in the distribution sector.
The Melbourne Business Park project
The development consortium today launched the first stage of the commercial project, which will cover 95 hectares.
That said, it has already sold 11 lots.
To be branded Melbourne Business Park, the estate will sit adjacent to Stockland’s master-planned Mt Atkinson residential village, which is taking shape.
Construction of the first industrial buildings are scheduled to start around this time next year.
Mt Atkinson Holdings director Anthony Caligiuri said he hopes the Stockland agreement will progress the Victorian Planning Authority vision to establish the suburb as a self-sustaining yet well-connected community.
Mr Caligiuri controls Mt Atkinson Holdings with other Melbourne businessman and property owners David Scalzo and Eli Goldfinger.
Half of the Mt Atkinson Holdings Truganina block is mooted for housing.
Yesterday, we reported that Charter Hall and ID_Land sold a site permit-ready for a shopping centre in the suburb – banking $9.6 million.
Charter Hall’s Prime Industrial Fund is also developing the Midwest industrial estate on a 60 hectare Truganina plot – one of many institutions building commercial stock in the area.
Melbourne Business Park and the Mt Atkinson Precinct Structure Plan
Melbourne Business Park is proposed for land bound by the planning rules in the Mt Atkinson Precinct Structure Plan.
The precinct will include schools, a train station, bus services, community facilities, a new town centre as well employment precincts.
Stockland Commercial Property chief executive officer Louise Mason expects its industrial estate to capitalise on Melbourne’s growing western suburb population.
“As announced at our 1Q19 results, the Workplace and Logistics sector continues to drive significant growth for the Commercial Property portfolio,” Ms Mason said.
“Our pipeline now totals over $2.5 billion, and continues to perform strongly as we up-weight our exposure to this asset class through development and strategic acquisitions which reflect forecast total returns above our investment hurdle rates”.
Melbourne’s western growth corridor, where Truganina is located, has experienced substantial growth over the last decade, with the total population in the Melton municipality set to reach 254,095 by 2029, according to Victoria in Future 2019 planning document.
The developers have already started selling down the project…
“The $190 million first stage of Melbourne Business Park has already seen Stockland obtain strong interest with Stockland accepting offers on 11 lots,” the consortium said.
“A further five industrial lots ranging in size from 1.2 hectares to 3.2 hectares will be released today targeting owner-occupiers and investors”.
Consolidated super-lots are also available.
…but they intend to hold onto the majority of subdivided lots as joint venture partners
It is currently intended that subsequent stages will be developed by Stockland and Mt Atkinson Holdings with a view that the majority of the subdivided lots will be held by the joint venture partners, the consortium said.
Stockland general manager, Workplace and Logistics, Tony D’Addona added that the business precinct “will provide significant owner occupier and pre-commitment opportunities for local, national and international businesses.”
“We are expecting strong interest from growth businesses particularly eCommerce and third party logistics industries who are looking to upscale or establish their industrial footprint in Melbourne”.
On Hopkins Road, the business park is two kilometres off the Western Highway diamond interchange.
“The area is flagged for significant freight and logistics infrastructure investment and is in close proximity to the planned future Outer Metropolitan Ring Road, and Western Interstate Freight Terminal,” Mr D’Addona added.
“The project is also situated next door to Mt. Atkinson residential community, which has received a strong response from home buyers with 750 sales to date, and will see up to 5000 families call the community home upon completion.
“Most importantly, Melbourne Business Park and surrounding employment precincts will help deliver close to 19,000 local jobs for the Mt. Atkinson community, contributing to the state’s significant Western Industrial Node and the Hopkins Road Business Precinct.
“Owners and tenants at Melbourne Business Park are expected to also enjoy new world-class facilities as the Mt. Atkinson precinct unfolds, with future rail, a retail town centre, schools, childcare, and vast public open spaces all on their doorstep.”