SYDNEY, 13 NOVEMBER 2018
In a massive strategic play, Frasers Property Australia (Frasers Property) has settled on a 63.4 hectare prime industrial land parcel valued at approximately $40 million. It is located in Melbourne’s northern suburb of Epping.
Situated at 410 Cooper Street, the property stretches through to O’Herns Rd in the north and is abutting the Hume Freeway. It will be located between two full diamond interchanges, allowing unparalleled access to Melbourne’s northern suburbs.
Anthony Maugeri, General Manager Southern Region of Frasers Property Australia’s Commercial and Industrial division said, “The Epping acquisition is a significant strategic purchase for the business and will further strengthen our position as one of the leading providers of prime industrial product in Melbourne. It also compliments Frasers Property’s other well-located industrial land holdings in Melbourne’s south east and west.
“Master planning has started and we expect to bring the first stage of the estate to the market by the middle of 2019. With an estimated value on completion of $250 million, the estate will feature pre-lease development, land and build packages as well as selective land sales.”
The new site will accommodate up to 250,000 sqm of built form, enabling Frasers Property to service existing and new customers.
Michael Green, Cushman & Wakefield Industrial Director, comments, “Construction, distribution and food users are predominant occupiers of industrial space in Melbourne’s north. As the population of Melbourne continues to grow, demand for food production, storage and distribution, housing manufacturing and eight-hour distribution to Sydney, will drive strong demand growth from occupiers in the area.
“Frasers Property’s new estate will predominantly satisfy the pre-lease market and brings the company’s strong track record in the west to Melbourne’s northern industrial market, where there is both strong demand and tight supply.”
“Land values have also been rising in the area, with increases of between 30 to 40 per cent recorded in the past 12 months,” he added.
“Melbourne’s northern industrial market (buildings greater than 5,000 sqm) consist of approximately 2.2 million sqm of gross floor area. A small 40,000 sqm of prime industrial space is currently vacant, generating a vacancy rate of under two per cent,” comments National Research Director from Cushman & Wakefield Tony Crabb.
“The north is essentially full and the current vacancy rate, reflects tenants moving around,” said Crabb.
Neighbouring properties to Frasers Property’s Epping land parcel include Melbourne’s Wholesale Fruit and Vegetable Market and large land occupiers such as Mainfreight, Mission Foods, Chemist
Warehouse, Visy, Coles, Bluestar Logistics, Linfox and Toll.
Michael Green from Cushman Wakefield brokered the deal.