Offshore capital sets its sights on Melbourne’s industrial sector
Middle Eastern-backed developer Al Jasser Group has acquired a major industrial development site in Melbourne’s western suburbs with the sale of 185 Leakes Road, Truganina, for $36.6 million in a tightly held off-market transaction that settled in just 10 days.
The purchase shows rising demand from overseas investors for development-ready industrial land in Australia’s tight logistics markets.
The Truganina site, which adjoins Amazon’s future data centre on Leakes Road, is earmarked for a large-scale warehouse development, with sales and leasing expected to commence in the second half of the year.
Al Jasser Group Managing Director Mahmoud Saadeddine said the acquisition was highly strategic, particularly given the scarcity of large-scale industrial opportunities in the area.
“[No.] 185 Leakes Road is one of the last remaining opportunities of scale in Truganina,” Saadeddine said. “There is significant demand for industrial warehouses driven by connectivity, proximity to key transport infrastructure, and access to a skilled workforce.”
The purchase further strengthens the group’s footprint in Melbourne’s west – Al Jasser already owns the adjoining site at 100 Palmer Road. The dual landholding positions the developer prominently within one of Victoria’s most in-demand logistics and industrial precincts, benefiting from direct access to the Princes Freeway and Western Ring Road, as well as proximity to the Port of Melbourne and Melbourne Airport.
Sunil Kumar of Reliance Commercial, who managed the Leakes Road transaction, said the deal highlights the scarcity and strategic importance of land in Truganina’s premium industrial pocket.
“With Al Jasser Group now controlling the adjoining 30-acre parcel, they are uniquely positioned to deliver significant industrial and commercial development at scale,” Kumar said.
The project is expected to create more than 700 jobs and has received strong support from the council, reflecting its anticipated contribution to employment generation and long-term economic growth across Melbourne’s western suburbs.
Al Jasser Group previously sold a nearby site to Amazon for $127 million three years ago, enabling the development of a major data centre currently under construction and expected to be completed next year.
The developer is now firmly positioned to expand its presence within one of the country’s fastest-growing industrial corridors, where owner-occupiers, investors and logistics operators continue to compete for modern warehouse stock amid limited land supply.
Industrial vacancy rates across Melbourne’s western suburbs remain below 2 per cent, with Truganina among the tightest sub-markets. Prime warehouse rents have recorded double-digit annual growth in recent years, while yields for modern industrial assets have compressed into the low-5 to high-4 per cent range amid sustained occupier and investor demand.
According to JLL, investor demand for logistics and industrial assets like Leakes Road has remained positive nationwide, with $10.2 billion in assets transacting over the past 12 months, above the long-term 10-year annual average of $8.2 billion.
CBRE’s latest Asia Pacific Investor Intentions Survey also found more than 60 per cent of offshore institutional investors are planning to increase their exposure to Australian industrial and logistics assets over the next two years, with the country ranked among the region’s most preferred markets for income stability.
