$180m Truganina logistics deal signals ongoing demand for Melbourne’s west
One of the year’s biggest industrial transactions has been inked with the $180 million sale of 725 Boundary Road, Truganina, to Citius Group, alongside Stamford Capital Investment Management.
The major industrial and logistics facility in the heart of the Truganina precinct offers direct access to the Western Freeway and Melbourne’s key arterial road network, making it highly attractive to major freight, distribution and supply-chain operators servicing the Port of Melbourne and Melbourne Airport.
Colliers national director of industrial and logistics Nick Saunders says the sale demonstrates the depth of demand for strategically positioned industrial assets with secure long-term fundamentals.
“This transaction demonstrates the strength of institutional demand for well-located industrial assets, particularly those offering long-term income security and strategic positioning within the logistics network,” Saunders says.
Industrial property has emerged as one of the strongest commercial real estate sectors in recent years, fuelled by the continued growth of e-commerce and freight infrastructure investment, and the need for large-scale distribution hubs close to major population centres.
Truganina, alongside neighbouring industrial precincts including Derrimut and Laverton North, has become a focal point for institutional buyers chasing large-format warehouse assets with strong tenant demand and limited future supply.
Colliers national director of industrial and logistics Hugh Gilbert says competition for premium industrial stock remains intense.
“Well-located, high-quality industrial assets such as 725 Boundary Road are attracting strong competition from sophisticated capital sources,” Gilbert says.
“Despite broader market uncertainty, investor conviction in prime industrial locations remains resilient, underpinned by long-term structural demand and limited new supply.”
The latest transaction adds to a growing list of major industrial deals across Melbourne’s west. Earlier this year, developer Al Jasser Group acquired the industrial development site at 185 Leakes Road, Truganina, for $36.6 million in an off-market deal that settled in just 10 days, further highlighting the weight of offshore capital targeting the precinct.
The Leakes Road site, which adjoins Amazon’s future data centre, is earmarked for a major warehouse development. Industrial vacancy rates across Melbourne’s west remain below 2 per cent, and Truganina continues to rank among the city’s tightest sub-markets.
Prime warehouse rents have posted strong double-digit annual growth in recent years, while investor demand for logistics and industrial assets nationally has remained elevated. JLL reports that $10.2 billion worth of assets transacted across the sector over the past 12 months, which is well above the long-term annual average of $8.2 billion.
