Bought for $333,000, sold for $27.5m as Melbourne land boom rolls on
Melbourne’s industrial land boom has rolled on with Frasers Property Australia paying $27.5 million for a 43-hectare site in the city’s outer west.
Title deeds show the site at 917 Boundary Road in Tarneit last changed hands for $333,721 in December 2008 when it was bought by the Camuglia family’s Canemoon Investments.
Its sale to Frasers, after being rezoned to industrial use, represented a capital gain of 8140 per cent in less than 11 years.
A recent CBRE report found the price of a 1.6-hectare Melbourne lot surged 22.8 per cent in the 12 months to March 2019 driven by competition for the best sites amid the e-commerce-driven logistics boom.
The Tarneit acquisition was the second large Melbourne land parcel acquired by Frasers in just five months.
In April it bought a 41.3-hectare land parcel at 875 Taylors Road in Dandenong South for $80 million with plans to develop it into a $300 million estate over the next three to five years.
Commenting on the latest acquisition, Frasers commercial and industrial manager Anthony Maugeri said: “We are replenishing our depleted stock in key markets across Melbourne where land values, rents and investment demand is increasing.
“The well-located Tarneit property further extends our reach in Melbourne’s largest industrial market, where we have held a strong market presence for over 20 years,” he added.
The first stage is expected to be brought to the market in late 2020 through a combination of small lot sales and pre-lease, speculative and turn-key development options.
In April, Frasers (part of Singaporean property giant Frasers Limited) lodged a planning permit for a multi-lot industrial subdivision on the Tarneit site with the City of Wyndham.
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