A site in Melbourne’s west has sold for $28 million and is set to be transformed into “one of Melbourne’s premier industrial parks”.
The 27.5 hectare site at 285 Palmers Road in Truganina, in the city’s west, was acquired by logistics property firm LOGOS for $28 million, according to market sources.
The sale is set to be settled by the end of the year, with the Macquarie-backed investment company then looking to obtain development approval for a “master-planned industrial estate” on the site.
Truganina, located 28 kilometres from the Melbourne CBD, is a major industrial suburb home to a number of large format logistics operators with direct access to major thoroughfares including the Princes Highway and the West Gate Freeway.
LOGOS will look to transform the site into a “modern logistics estate” for a variety of warehouses, with a total gross leasable area of 160,000 square metres, LOGOS joint managing director Trent Iliffe said.
“The Truganina site is an important addition to our logistics property holdings in Melbourne’s west and will allow us to grow our customers continued demand in this area,” Mr Iliffe said.
“This is a strategic acquisition for the group as it will be one of the few sites currently able to deliver leasing pre-commitments, particularly over 50,000 square metres, in Melbourne’s west.”
The property was acquired from the Andrianakos family.
Selling agent Cushman & Wakefield director of industrial sales Pierre Ghougassian said the site was one of the few sites left in Melbourne that can cater for a 50,000-square-metre building.
“Securing this strategic land parcel will allow LOGOS to benefit from the huge demand forecasted over the next two to three years, as we see large multinational tenants who signed leases immediately after the GFC coming up for renewal in Melbourne’s west,” Mr Ghougassian said.
Lack of land amid heightened demand
With suitable land being quickly snapped up, the local logistics market will become increasingly competitive, Mr Ghougassian said.
“Finding zoned industrial land in Melbourne’s western suburbs is becoming increasingly very difficult and is only set to get even tighter. Large developable land parcels such as this in Victoria are being very hotly contested as we enter a period in the market where future land releases look as though they will be at least three-plus years away.”
The acquisition comes just months after LOGOS closed a $500 million fund for logistics facilities, backed by a single investor. The fund will be used to buy logistics facilities in the local market, like the site in Truganina.
As of the start of the year, LOGOS has $4 billion of equity commitments to 14 ventures with a targeted end-value of assets under management of over $9 billion.