Brookfield Secures Approval for Pakenham Logistics Complex

Brookfield Properties has won development approval for one of the last available logistics sites in Pakenham’s employment precinct.

The move has been made to meet rising demand from small and medium enterprises seeking domestic supply chain solutions, according to Brookfield Property, and marks a significant expansion of the Canadian multinational investment manager’s Australian logistics footprint.

The Cardinia Logistics Estate is planned to encompass two sites at 60 and 130 Greenhills Road, 56km south-east of Melbourne,

The estate is planned to deliver more than 185,000sq m of logistics space in Melbourne’s south-east and will be the company’s first Victorian logistics estate.

The timing aligns with significant market shifts. Research by the Small Business Development Corporation (SBDC) shows rising demand for domestic supply chain resilience has spurred the need for warehousing near urban centres.

Companies are increasingly targeting infill locations closer to consumers to support operational efficiency.

Brookfield Properties senior vice-president, developments, Will Green said Cardinia Logistics Estate was “a rare opportunity ... within a prime institutional-grade logistics hub in one of Melbourne’s most sought-after industrial precincts”.

▲ A render of the approved Cardinia Logistics Estate at Pakenham.

The shift towards localisation is influencing Australia’s industrial property and warehousing sectors, according to SBDC research and other industry analyses.

The research shows businesses are increasingly looking for warehousing near urban centres to reduce transportation costs and offer faster delivery times. This trend aligns with the growth of e-commerce and the prioritisation of domestic inventory storage.

Cardinia Logistics Estate’s location includes a 630m frontage to Greenhills Road and access to the Princes Freeway via Koo Wee Rup and McGregor roads.

Upcoming infrastructure projects including Melbourne’s North-East Link, the Dandenong South Inland Port, the Monash Freeway Upgrade, and the Suburban Rail Loop will bolster that connectivity.

According to Small Business Connections research, sustainability has become a critical factor in property development, with green-certified warehouses and energy-efficient designs gaining traction.

▲ Tenants slated for the Pakenham estate include Kerry Logistics, Honest to Goodness, Scope Joinery, FJT Logistics, Seima and Euro Car Parts.

Brookfield’s plans include solar PV arrays, LED lighting, water efficient fixtures, rainwater harvesting, and native vegetation with drip irrigation systems.

Technical specifications include 13.7m warehouse clearance heights and facilities accommodating up to 36m hardstands.

The estate is part of Brookfield Asset Management’s global logistics portfolio, which manages around $37 billion in assets across 553 warehouses internationally.

Since 2021, the company has strategically expanded its Australian real estate holdings in the logistics sector, responding to e-commerce growth and increasing demand for last-mile facilities along the eastern seaboard.

The first warehouses at Cardinia Logistics Estate are scheduled for occupation late next year, with JLL and Colliers appointed to manage leasing.

In September, Brookfield listed the Portside Wharf retail precinct, which includes 7401sq m of developable land on two sites, featuring one with an approval for 23-storey, 560-apartment, build-to-rent, twin tower.